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					37946             Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

POSTAL SERVICE                               PRC’s Recommended Decision except              Part A of this notice summarizes
                                             for the recommended classifications and      major changes that have been made to
39 CFR Part 111                              fees for Prepaid Reply Mail and the          or added to the proposed
                                             recommended ‘‘shell classification’’ for     implementation standards since the
Domestic Mail Manual Changes To              Courtesy Envelope Mail. The Governors        proposed rule. This includes changes
Implement the Rate, Fee, and                 expressed concern about the necessity        made because of differences in the
Classification Changes in Docket No.         for these separate classifications. The      Postal Service’s proposal and the PRC’s
R97–1                                        Governors have encouraged                    recommended decision, changes made
AGENCY:    Postal Service.                   management to consider whether               in response to the Governors’ decisions,
ACTION:   Final rule.                        refinements to the approved Qualified        and changes made by the Postal Service
                                             Business Reply Mail (QBRM)                   in response to mailer comments or for
SUMMARY: This final rule sets forth the      classifications and fees can be              other reasons. Part B provides a
Domestic Mail Manual (DMM)                   developed which improve upon the             summary of all of the changes in
standards adopted by the Postal Service      accounting options and fees approved         Domestic Mail Manual standards made
to implement the rate, fee, and              for QBRM. The Postal Service plans to        as a result of Docket No. R97–1 and this
classification changes for all classes of    further study the issue of consumer          rulemaking process. Part C contains an
mail included in the Decision of the         automation discounts.                        analysis of comments received on the
Governors of the Postal Service in Postal       The Governors allowed under protest,      proposed rule and the Postal Service
Rate Commission Docket No. R97–1.            and returned to the Postal Rate              responses. Part D summarizes the
EFFECTIVE DATE: This final rule is           Commission for reconsideration, the          changes to the DMM by DMM module,
effective at 12:01 a.m. on January 10,       rate schedules for Within County             followed by the text of the revised DMM
1999.                                        Periodicals, Library Rate Mail, and DDU      standards.
FOR FURTHER INFORMATION CONTACT:             Parcel Post.                                 A. Major Changes and Additions Other
Lynn M. Martin, 202–268–6351 (all               The Board of Governors set an             Than Rate and Fee Levels Since the
topics); Paul Lettman, 202–268–6261          implementation date of January 10,           March 16, 1998, Proposed Rule
(Parcel Post); Thomas DeVaughan, 202–        1999, for the approved rate, fee, and
268–4491 (Business Reply Mail).              classification changes to take effect,       1. Express Mail
SUPPLEMENTARY INFORMATION: On July           except for delivery confirmation and the     a. Hazardous Materials Surcharges
10, 1997, the Postal Service, acting         electronic form of return receipt
under sections 3622 and 3623 of the          (signature confirmation) service for           The Postal Rate Commission did not
Postal Reorganization Act (39 U.S.C.         delivery confirmation customers. The         recommend the proposed surcharges for
3622, 3623), filed a request for a           Board of Governors determined that           hazardous medical materials and for
recommended decision by the Postal           implementation of the new delivery           other hazardous materials. Therefore,
Rate Commission (PRC) on proposed            confirmation service approved in the         provisions for hazardous materials
rate, fee, and classification changes. The   Governors’ Decision, as well as the          surcharges have not been included in
PRC designated this filing as Docket No.     classification change allowing delivery      the DMM.
R97–1. A notice of filing, with a            confirmation as a sole prerequisite for      2. Priority Mail
description of the Postal Service’s          return receipt service, should take place
proposals, was published by the PRC on       after the effective date established for     a. Hazardous Materials Surcharges
July 23, 1997, in the Federal Register       the other changes approved and allowed
                                                                                            The Postal Rate Commission did not
(62 FR 39660).                               by the Governors, but not later than June
                                                                                          recommend the proposed surcharges for
   On March 16, 1998, the Postal Service     1, 1999. Later implementation will
                                                                                          hazardous medical materials and for
published for public comment in the          provide time for deployment of the
                                                                                          other hazardous materials. Therefore,
Federal Register a proposed rule (63 FR      technology used to provide these service
                                                                                          provisions for hazardous materials
12864) that provided information on the      features. The Board of Governors
                                                                                          surcharges have not been included in
implementation rules for the rate, fee,      determined that an effective date for
                                                                                          the DMM.
and classification changes that the          delivery confirmation and the electronic
Postal Service proposed to adopt if its      form of return receipt (signature service)   b. Weight
requested changes in Docket No. R97–1        will be selected through future action by
                                                                                            The weight at which heavy First-Class
were recommended by the PRC and              the Board.
                                                                                          Mail pieces must be paid at the Priority
approved by the Governors of the Postal         A notice announcing the Governors’
                                                                                          Mail rates is increased from First-Class
Service.                                     decision and the issuance of final
                                                                                          Mail weighing over 11 ounces to First-
   Pursuant to 39 U.S.C. 3624, on May        Domestic Mail Classification Schedule
                                                                                          Class Mail weighing over 13 ounces. At
11, 1998, the PRC issued its                 and Rate Schedule changes is contained
                                                                                          the mailer’s option, any other mail
Recommended Decision on the Postal           in a separate notice to be published in
                                                                                          matter (including regular First-Class
Service’s Request to the Governors of        the Federal Register.
                                                                                          Mail weighing 13 ounces or less) may be
the Postal Service. The PRC                     This final rule contains the DMM          mailed as Priority Mail.
recommendations made revisions to            standards adopted by the Postal Service
some of the mail classification structure,   to implement the Governors’ decision.        3. First-Class Mail
rates, and fees requested by the Postal      The revised DMM standards will take          a. Hazardous Materials Surcharges
Service. Based on an extensive analysis      effect on January 10, 1999. The
of the PRC’s Recommended Decision            standards for delivery confirmation and        The Postal Rate Commission did not
and deliberation as to its consequences      the electronic form of return receipt        recommend the proposed surcharges for
to the Postal Service and its customers,     (signature confirmation) service are not     hazardous medical materials and for
and pursuant to 39 U.S.C. 3625, the          included in this final rule. They will be    other hazardous materials. Therefore,
Governors acted on the PRC’s                 contained in a separate Federal Register     provisions for hazardous materials
recommendations on June 29, 1998. The        notice when an implementation date is        surcharges have not been included in
Governors determined to approve the          set by the Board of Governors.               the DMM.
                 Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                          37947

b. Heavy Piece Discount                        rate under the provisions for ‘‘residual’’    6. Standard Mail (B)
   The additional heavy piece presort          pieces set forth in the proposed rule and
                                                                                             a. Barcoded Discounts
discount of $0.046 for the first ounce of      this final rule. Reasons include the
mailpieces weighing more than 2                mailer having pieces remaining in a              (1) Additional Barcode Option. A
ounces remains in effect.                      mailing job that cannot be matched to a       fourth barcode symbology, UCC/EAN
                                               correct 5-digit ZIP Code, or the mailer       Code 128, has been added. The USPS,
c. Maximum Weight                              choosing not to hand-sort handwritten         in cooperation with the parcel shipping
   The maximum weight of First-Class           pieces that could not be barcoded and         industry, has adopted the UCC/EAN
Mail is increased from 11 ounces to 13         sorted by a multi-line optical character      Code 128 as its preferred code structure
ounces.                                        reader (MLOCR). In such instances,            and symbology standard. The UCC/EAN
d. Prepaid Reply Mail                          mailers must pay single-piece First-          Code 128 permits encoding of either the
                                               Class Mail or Priority Mail postage on        5-digit ZIP Code or the ZIP+4 code. The
  Prepaid Reply Mail will not be               the pieces.
implemented.                                                                                 ZIP Code information must be preceded
                                                  If mailers desire to receive First-Class   by the Application Identifier ‘‘420’’ that
4. Periodicals                                 or Priority Mail service as applicable        signifies a domestic ZIP Code, and must
a. Eligibility for In-County High Density      based on the weight of the mailpieces         not include the trailing verifier
Rates                                          (including forwarding and return              character ‘‘9’’ used with other barcode
                                               services), they must re-envelope or           symbologies. The UCC/EAN code 128
   Eligibility for the high density rate for
                                               otherwise prepare the mailpieces so that      will become mandatory for the barcoded
In-County pieces will be revised to
                                               they bear only the proper First-Class         discount in five years (January 10,
allow walk-sequenced pieces for a
                                               Mail or Priority Mail rate markings,          2004). During the 5-year phase-in
carrier route to qualify when there are
either a minimum of 125 pieces for a           ancillary service endorsements, Address       period, UCC/EAN Code 128, as well as
carrier route or addressed pieces for at       Change Service (ACS) codes, etc.              USS Code 128; USS Code I 2/5; and USS
least 25 percent of the total active           Metered pieces weighing over 13 ounces        Code 39 symbologies will be permitted.
possible deliveries on a carrier route.        and less than 16 ounces must always be           (2) Numeric Equivalent of Barcode.
                                               prepared under this method.                   The requirement to print human-
5. Standard Mail (A)
                                                  Except for metered pieces weighing         readable characters representing the
a. Hazardous Materials Surcharges              over 13 ounces and less than 16 ounces,       numeric equivalent of the ZIP Code
   The Postal Rate Commission did not          mailers who do not desire to receive          information in the barcode (i.e.,
recommend the proposed surcharges for          First-Class or Priority Mail service on       omitting the verifier character or, for
hazardous medical materials and for            such pieces may submit them ‘‘as is’’         UCC/EAN Code 128, omitting the 3-digit
other hazardous materials. Therefore,          (i.e., bearing the Standard Mail (A)          application identifier characters) near
provisions for hazardous materials             markings and endorsements). No                the barcode will not be required if the
surcharges have not been included in           additional markings or postage are to be      barcode is on the same label as the
the DMM.                                       added to these pieces. First-Class Mail       address block and is placed in close
                                               or Priority Mail postage must be paid for     proximity to the address. The human-
b. ‘‘Presorted Standard’’ Marking              these pieces using the appropriate First-     readable numeric equivalent of the ZIP
   A two-year transition period (instead       Class or Priority Mail postage statement.     Code information in the barcode will be
of one year) will be permitted for             Except for metered pieces weighing over       required for barcodes not printed on the
mailers to change their ‘‘Bulk Rate’’          13 ounces and less than 16 ounces, mail       same label as the address block on
markings to ‘‘Presorted Standard.’’ Until      bearing metered or precanceled stamp          mailpieces.
January 10, 2001, mailers of regular rate      postage must, under this option, pay the
Standard Mail (A) material (matter at          difference between the postage affixed           (3) Parcel Post ASF Barcoded Rate
regular Presorted Standard Mail (A),           and the First-Class Mail or Priority Mail     Exclusion. The exclusion from the
regular automation, and regular                rates by means of an advance deposit          barcoded discount of machinable pieces
Enhanced Carrier Route rates) may use          account or by affixing a meter strip for      eligible for DBMC rates that are entered
either the ‘‘Bulk Rate’’ or the ‘‘Presorted    the appropriate amount to the postage         at an auxiliary service facility (ASF) has
Standard’’ markings or their respective        statement. If the pieces weigh 13 ounces      been revised. Since the Phoenix,
authorized abbreviations on their              or less, mailers must use special line        Arizona, ASF has parcel barcode
mailings. At the mailer’s option the           items on the new First-Class postage          reading equipment, machinable pieces
‘‘Presorted Standard’’ marking or its          statements under the heading ‘‘From           of Parcel Post DBMC rate mail entered
abbreviation may be used instead of            Standard Mail (A)’’ to record the pieces      at the Phoenix ASF will be eligible for
‘‘Bulk Rate’’ or its abbreviation effective    mailed. This option may be used for           barcoded discounts. Since no other
immediately.                                   fewer than 200 pieces of permit imprint       ASFs have barcode reading equipment,
c. ‘‘RSS’’ Marking                             mail only if the pieces were part of a        DBMC rate mail entered at ASFs other
                                               larger mailing job and are submitted for      than Phoenix will not be eligible for the
   The Postal Service will not require a                                                     barcoded discount.
separate ‘‘RSS’’ marking for pieces that       acceptance along with the mail and a
are subject to the residual shape              Standard Mail (A) postage statement for       b. Hazardous Materials Surcharges
surcharge.                                     the other pieces in the same mailing job.
                                               Metered pieces weighing over 13 ounces          The Postal Rate Commission did not
d. Pieces Not Qualifying for Standard          and less than 16 ounces cannot use this       recommend the proposed surcharges for
Mail                                           option since there is no postage              hazardous medical materials and for
  (A). Mailers have indicated that they        statement on which they can be                other hazardous materials. Therefore,
may have pieces prepared with                  reported and therefore must be re-            provisions for hazardous materials
Standard Mail (A) rate markings that           enveloped and prepared as Priority            surcharges have not been included in
cannot be mailed at a Standard Mail (A)        Mail.                                         the DMM.
37948           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

c. Parcel Post BMC Presort and OBMC          the sum of the pieces on all pallets          of city carriers’’ rule, are also added to
Presort Discounts                            listed above it).                             the DMM. If a 5-digit ZIP Code is listed
                                                (3) Overflow Provisions for Palletized     in DMM Exhibit E652.6.0 or E652.7.0,
   (1) Mail Preparation. The proposed
                                             Mail Added. Provisions are added to           the facility listed in one of those
requirement to prepare machinable
                                             allow overflow from 5-digit pallets to be     exhibits must be used to determine the
parcels in pallet boxes measuring 72
                                             placed in corresponding 5-digit sacks.        name of the delivery unit. The name of
inches high and to fill the boxes with at
                                             The overflow 5-digit sacks have no            the delivery unit must then be looked
least 54 inches of mail to qualify for
                                             minimum quantity requirement, and the         up in the Drop Shipment Product to
these discounts is revised. The new          pieces placed in them will qualify for        determine if mail for it, and therefore
requirement is to prepare machinable         the DSCF rate. Mailers will also have         mail for the 5-digit ZIP Code, can be
parcels in pallet boxes measuring 69         the option of preparing a 5-digit             prepared on pallets to qualify for the
inches high and to fill the boxes with at    overflow pallet. However, the pieces on       DSCF rate. At some point in the future
least 52 inches of mail to qualify for       overflow pallets, which by definition         the information in these two exhibits
these discounts. The preparation             contain less than the minimum quantity        will be incorporated in the Drop
requirements for nonmachinable mail          required for a qualifying DSCF rate           Shipment Product.
did not change.                              pallet, are not eligible for DSCF rates          (7) Nonmachinable Outsides.
   (2) Documentation. The requirement        and are subject to the DBMC rates.            Nonmachinable outside (NMO) parcels
for documentation listing number of             (4) Pallet Boxes. The prohibition          by definition cannot be prepared in
pieces per individual pallet is              against use of pallet boxes on pallets for    sacks because they will not fit in a sack.
eliminated.                                  the DSCF rate is eliminated. Pallet boxes     Therefore, NMOs must be prepared
d. Parcel Post Oversized Pieces.             on pallets will be permitted for any 5-       directly on pallets or in pallet boxes on
                                             digit facility that can handle pallets,       pallets. If overflow pallets are prepared,
  The 10% limit per mailing of pieces        provided the pallet boxes measure no          the pieces on such pallets are subject to
that measure over 108 inches but not         more than 60 inches high and meet the         the DBMC rates. The DSCF rate is not
more than 130 inches in combined             pallet box provisions in DMM M041.            available for NMOs at those 5-digit
length and girth is removed. In its place    Mail prepared in pallet boxes is subject      delivery units that cannot handle
the PRC recommended and the                  to the same pallet minimum preparation        palletized mail as listed in the Drop
Governors of the Postal Service              options as parcels placed directly on         Shipment Product and in Exhibits
approved oversized rates for such            pallets.                                      E652.6.0 and E652.7.0.
pieces. These oversized rates are greater       (5) Sacks on Pallets. Under DMM               (8) Exceptions to DMM Exhibit
than the rates for 70-pound parcels.         M045.12, mailers may consolidate 5-           E652.5.0. Provisions are added to allow
e. Parcel Post DSCF Rate                     digit sacks prepared under DMM M630           mailers to submit a written request to
                                             and/or under DMM M045.11 that                 the Area Manager, Operations Support,
   (1) Sacking Requirements Revised.         qualify for the DSCF rate on an SCF           for permission to bring palletized mail
The minimum number of pieces per 5-          pallet. Both 5-digit sacks meeting or         for a 5-digit ZIP Code area listed in
digit sack is revised from 10 pieces to      exceeding the 7-piece minimum and             DMM Exhibit E652.5 to the DSCF rather
7 pieces. A provision also is added to       overflow sacks (overflow from sacks and       than to the applicable BMC. Such
allow one overflow sack per 5-digit          overflow from pallets) may be palletized      exceptions must be requested at least 15
destination. The overflow sack has no        in this manner. However, if in the same       days in advance and may be granted for
minimum quantity requirement.                mailing, mail is palletized under             a limited period of time only.
   (2) New Pallet Preparation Option         M045.11.1 and sacked under M630, the             (9) Separation of Perishable and
Added. In response to mailer comments        sacks that are prepared as overflow from      Nonperishable Parcels. The requirement
that the pallet minimums were too high,      pallets must, at the time of acceptance,      to separate perishable and
a new pallet preparation option has          be separated from sacks prepared under        nonperishable parcels is deleted from
been added. This option allows               M630. SCF pallets containing 5-digit          the final DMM rules.
preparation of 5-digit pallets with a        sacks qualifying for the DSCF rate may
minimum of 35 pieces and 200 pounds          be prepared without having to first           f. Parcel Post DDU Rate
of mail, provided the average number of      prepare all possible 5-digit pallets and         (1) Pallet Boxes. The prohibition
pieces placed on pallets qualifying for      without having to meet a 250-pound            against the use of pallet boxes on pallets
the DSCF rate in such a mailing is at        pallet minimum. A special pallet label        is eliminated. Pallet boxes on pallets
least 50 pieces. In order to document        is specified for these pallets in M045.       will be permitted for any 5-digit facility
that no pallet contains less than 35            (6) Additional Information Pertaining      that can handle pallets, provided that
pieces and 200 pounds and that the           to Drop Shipment Product. Mailers must        the pallet boxes measure no more than
average number of pieces per pallet          use the following additional information      60 inches high and meet the pallet box
claiming the DSCF rate is at least 50        when using the Drop Shipment Product          provisions in DMM M041.
pieces, mailers will be required to          to determine whether mail for a 5-digit          (2) Additional Lists Pertaining to Drop
submit detailed documentation and            ZIP Code delivery unit may be prepared        Shipment Product. Mailers must use the
place sequential identification numbers      on pallets to qualify for the DSCF rate.      following additional information when
on qualifying pallets of DSCF rate mail.     The DMM standards are revised to              using the Drop Shipment Product to
The documentation must list each pallet      specify that when the Drop Shipment           determine the location of the delivery
in sequential order by pallet                Product shows that mail for a single 5-       unit for a 5-digit ZIP Code area. When
identification number. The listing must      digit ZIP Code area is delivered from         mail for a single 5-digit ZIP Code area
show for each pallet: the pallet             more than one facility, the facility listed   is delivered from more than one facility,
identification number, the 5-digit ZIP       in the Drop Shipment Product that             the facility listed in the Drop Shipment
Code of the pallet, the total weight of      delivers mail to the majority of city         Product that delivers mail to the
pieces on the pallet, the total number of    carrier routes will be considered the         majority of city carrier routes is the
pieces on the pallet, and the cumulative     delivery unit for parcel post. Two            delivery unit at which mail must be
total of pieces (i.e., the number equal to   exhibits, Exhibits E652.6.0 and 652.7.0       entered to claim the DDU rate. There are
the number of pieces for that pallet plus    that contain exceptions to the ‘‘majority     two exceptions to this general rule. Two
                 Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                         37949

exhibits, Exhibit E652.6.0 and Exhibit          may be used instead of ‘‘Bulk Rate’’        c. Delivery Confirmation
E652.7.0 are added to DMM E652.                 effective immediately. (This marking          Standards concerning delivery
Exhibit E652.6.0 contains exceptions to         will be required effective January 10,      confirmation were removed pending an
the ‘‘majority of city carrier routes’’ rule.   2000.) In addition, mailers may use the     implementation date.
Exhibit E652.7.0 contains other                 marking ‘‘Presorted Standard’’ (or
anomalous situations including those            ‘‘PRSRT STD’’) instead of ‘‘Presorted’’     d. Merchandise Return Service
where a parcel annex is used to deliver         (or ‘‘PRSRT’’) wherever the ‘‘Presorted’’      The Postal Service revised the
mail for multiple 5-digit ZIP Codes. If a       marking is required or permitted.           requirements for preprinted rate
5-digit ZIP Code is listed in DMM                                                           markings. The Priority Mail marking
Exhibit E652.6.0 or Exhibit E652.7.0, the       7. Special Services
                                                                                            will not be required to be preprinted on
facility location in one of those lists is      a. Bulk Insurance                           all matter that might be subject to that
the delivery unit to which the mail must                                                    rate upon return. It is understood that
be brought to qualify for the DDU rate.           A provision requiring an electronic       permit holders may not be able to
This facility must be looked up in the          manifest to qualify for the bulk            predict whether a piece that might be
Drop Shipment Product to determine if           insurance discount was recommended          returned will weigh over 13 ounces but
that facility can handle pallets and (for       by the PRC and approved by the              less than 16 ounces and therefore need
facilities listed in Exhibit E652.6.0) to       Governors of the Postal Service.            a Priority Mail marking on the
determine the address of the facility.          Therefore, one of the requirements to       merchandise return label. Therefore, the
   (3) Pallet Stacking. Mailers may stack       obtain this discount will be to provide     permit holder must preprint a Priority
pallets of mail entered at destination          a hard copy of Form 3877, Firm Mailing      Mail marking only when it is desired
delivery units provided that the mailer         Book for Accountable Mail (or               that the mail matter be returned at those
unloads and unstacks the pallets at the
                                                facsimile), and a copy of Form 3877 on      rates regardless of its weight. Pieces
delivery unit and removes any strapping
                                                a diskette or other electronic medium.      prepared with merchandise return
material.
   (4) Appointments. To facilitate the          When systems that electronically            labels that do not contain a preprinted
scheduling of drop shipments to                 capture information on accountable          rate marking will be returned at the
delivery units, the Postal Service will         mail are completed and programming          First-Class Mail rates if weighing 13
allow standing appointments if                  changes that will tie the St. Louis ASC     ounces or less, at the Priority Mail rates
shipment frequency is weekly or more            into these systems are completed,           if weighing over 13 ounces but less than
often. A provision also has been added          mailers will be required to file claims     16 ounces, and at the Parcel Post rates
in E652.3.4 to specify that appointments        electronically. When or before these        if weighing 16 ounces or more.
are required for mixed loads of                 changes and systems are completed,          d. Return Receipt
Periodicals and Standard Mail (B)               bulk insurance mailers will be provided
                                                with instructions for a new format for        The Postal Service determined not to
entered at destination entry rates. DMM
                                                the electronic Form 3877 and with           revise DMM D042.1.7.
E250.2.4 already contains a similar
provision for DDU entry of mixed loads          instructions for electronically filing      B. Summary of all DMM Revisions for
of Periodicals and Standard Mail.               claims.                                     R97–1
   (5) Grace Period for Late Arrivals. The
                                                b. Business Reply Mail                      1. Express Mail
grace period allowed for late arrival of
shipments at DDUs, previously stated to           Mailers will have until January 10,       a. Rate Highlights
be 1 hour, is revised to 20 minutes.            2001, to comply with the standard that        Overall, Express Mail rates will
g. Markings                                     Qualified Business Reply Mail pieces        increase 9%. For Post Office to
                                                and other BRM pieces bearing a barcode      Addressee service, the letter rate will
   (1) Parcel Post. Except for mail
                                                that measure more than 41⁄4 inches by 6     increase to $11.75 and the 2-pound flat
qualifying for a drop shipment rate,
                                                inches must meet a minimum thickness        rate will increase to $15.75. The fee for
mailers will be given a one-year grace
                                                requirement of .009 inch. In addition,      pickup service will increase from $4.95
period, until January 10, 2000, to print
the ‘‘Parcel Post’’ or ‘‘PP’’ markings in       mailers of QBRM and other BRM pieces        to $8.25 per occurrence.
the postage area. As of January 10, 1999,       that bear a barcode will be given until
                                                January 10, 2001, to meet the amended       b. Rate Structure
Drop Shipment rate mail must show the
‘‘Parcel Post’’ or ‘‘PP’’ marking in the        requirements for the barcode clear zone,       There are no changes to the rate
postage area and the marking ‘‘Drop             window placement for lower right            structure.
Ship’’ or ‘‘D/S’’ in either the postage         barcodes, and placement of the leftmost     2. Priority Mail
area or on the line above or two lines          bar of lower right barcodes. The barcode
above the address. An exception is that         specifications that are in DMM C840         a. Rate Highlights
DBMC rate mailers currently using the           will be required, rather than optional.       On average, Priority Mail rates will
‘‘DBMC Parcel Post’’ or ‘‘DBMC PP’’             The basis weight requirement for            increase 5.6%. The fee for pickup
marking may continue to do so until             envelopes in C810.7.1 will not apply to     service will increase from $4.95 to $8.25
January 10, 2000.                               BRM. BRM envelopes must continue to         per occurrence.
   (2) Standard Mail (B) Other than             meet a minimum paper basis weight of
                                                20 pounds (measured using 500 sheets        b. Classification and Rate Structure
Parcel Post. Mailers not already doing
so will have until January 10, 2000, to         of 17- by 22-inch paper). The standard        (1) Keys and Identification Devices.
place the current required subclass             in current S922.6.4 that envelope           Keys and identification devices that
markings ‘‘Bound Printed Matter,’’              material must not have a                    weigh more than 13 ounces but not
‘‘Special Standard,’’ and ‘‘Library Mail’’      phosphorescence exceeding 4.0               more than 2 pounds will be subject to
or ‘‘Library Rate’’ in the postage area (as     phosphor meter units is retained and        the 2-pound Priority Mail rate plus a
opposed to elsewhere on the mailpiece).         corrected to state that envelope material   $0.30 fee.
   (3) Bound Printed Matter. At the             must not have a red fluorescence              (2) Elimination of Presort Category.
mailer’s option the ‘‘Presorted’’ marking       exceeding 4.0 phosphor meter units.         The Presorted Priority Mail rate category
37950            Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

will be eliminated. Therefore, DMM            Classroom publications. Authorization         c. Mail Preparation
labeling list L102, ADCs—Presorted            fees will not change, except that the            (1) Automation Letters. Preparation of
Priority Mail, also will be eliminated.       additional entry fee decreases from           the 5-digit or 5-digit scheme sort for
  (3) Delivery Confirmation. A new            $85.00 to $50.00.                             letter-size automation rate mailings will
delivery confirmation service will be                                                       be revised from a required level of sort
available with Priority Mail in early         b. Classification and Rate Structure
                                                                                            to an optional level of sort.
1999. See further details under ‘‘Special        (1) Per-Piece Rates. Separate 5-digit         (2) SCF Sack. The current optional
Services.’’                                   presort per-piece rates and 3-digit           SCF sack for nonletter mail will be
3. First-Class Mail                           presort per-piece rates will be added for     revised to a required level of
                                              Regular, Nonprofit, Classroom, and In-        preparation. Preparation of an optional
a. Rate Highlights                            County subclasses. Furthermore, the 3-        origin/required entry SCF sack will be
   The single-piece first-ounce letter rate   digit presort level rates will apply to       added. Preparation of an optional
will be increased one cent from $0.32 to      both unique and nonunique 3-digit ZIP         origin/required entry 3-digit sack will be
$0.33, and the rate for each additional       Code prefixes.                                eliminated. SCF packages are not and
ounce will decrease to $0.22. The                To qualify for the nonautomation 5-        will not be permitted.
nonstandard surcharges for non-card-          digit per-piece rates, mail must be           d. Forwarding and Return
rate pieces will not increase and will        prepared in a 5-digit package of six or
remain at $0.11 for single-piece rate         more pieces and must be containerized            Charges for the return of Periodicals
mail and $0.05 for presorted mail. For        as follows: for letter mail, be placed in     mail bearing the ‘‘Address Service
card rates, no change will be made to         a 5-digit tray; for nonautomation flat        Requested’’ endorsement will be paid at
the single-piece rates, nonautomation         mail, be placed in a 5-digit sack or on       the First-Class Mail rates for pieces
Presorted rates, automation 3-digit rates     any presort level of pallet. To qualify for   weighing 13 ounces or less and at the
and automation basic rates. No change         automation 5-digit per-piece rates for        Priority Mail rates for pieces weighing
will be made to 3⁄5-digit automation flat     letters, mail must be part of a group of      more than 13 ounces. (Priority Mail
rates. Small increases will be made to        150 pieces for the same 5-digit or 5-digit    rates also apply to pieces weighing 16
other automation rates and Presorted          scheme, properly placed in a 5-digit or       ounces or more.) This is due to the
rates. The annual presort mailing fee         5-digit scheme tray. To qualify for           elimination of the Standard Mail (A)
will be increased from $85.00 to              automation 5-digit per-piece rates for        single-piece rates discussed below.
$100.00.                                      flats, mail must be prepared in a 5-digit     5. Standard Mail (A)
b. Classification and Rate Structure          package of six or more pieces and
                                              placed in any level of sack or on any         a. Rate Highlights
   (1) Increase in Maximum Weight. The        level of pallet.                                 There will be average rate increases of
maximum weight of First-Class Mail                                                          2.6% for Regular, 2.3% for Enhanced
will be increased from 11 ounces to 13           To qualify for the nonautomation 3-
                                              digit per-piece rates, sacked flat-sized      Carrier Route, and 14.0% for Nonprofit
ounces.                                                                                     subclasses. On average, there will be a
   (2) Keys and Identification Devices.       mail must be prepared in a 5-digit
                                              package of six or more pieces or in a 3-      8.0% decrease in Nonprofit Enhanced
Keys and identification devices that                                                        Carrier Route rates. Nonprofit and
weigh 13 ounces or less will be subject       digit package of six or more pieces, and
                                              must be placed in a 3-digit sack; trayed      Nonprofit ECR pound rates will
to the applicable single-piece letter rate,                                                 decrease. Regular and ECR pound rates
plus a $0.30 fee and, if applicable, the      letter-size mail must be prepared in a 5-
                                              digit package of six or more pieces or in     will remain the same. For the first time,
nonstandard surcharge.                                                                      the automation 5-digit letter rate will be
   (3) Qualified Business Reply Mail. A       a 3-digit package of six or more pieces,
                                              and must be placed in a 3-digit tray.         lower than the basic Enhanced Carrier
new classification category and rate                                                        Route rate. The basic Enhanced Carrier
structure for qualified business reply        Palletized flat-sized mail must be
                                              prepared in a 3-digit package of six or       Route minimum per-piece rates will be
mail (QBRM) that must be letter-size                                                        the same for letter-size and for
(including cards), automation-                more pieces and placed on a 3-digit or
                                              higher (e.g., SCF, ADC) level of pallet.      nonletter-size pieces. The destination
compatible, and barcoded will be                                                            entry discounts will maintain their
added. As a result, the BRMAS fee                To qualify for automation 3-digit per-     current discount differentials between
category will be eliminated. The rate         piece rates for letters, mail must be part    BMC and SCF and between SCF and
structure for QBRM includes a lower           of a group of 150 pieces for the same 3-      DDU. The annual presort mailing fee
first-ounce rate. The fee structure for       digit or 3-digit scheme and be properly       will increase from $85.00 to $100.00.
QBRM requires an annual permit fee, an        placed in a 3-digit or 3-digit scheme
annual accounting fee, and a fee for          tray. To qualify for automation 3-digit       b. Rate Structure
each piece returned. More specific            per-piece rates for flats, mail must be          (1) Elimination of Single-Piece Rates.
requirements for this new classification      prepared in a 3-digit package of six or       The single-piece Standard Mail (A) rates
category are described under DMM E150         more pieces and placed in a 3-digit or        will be eliminated. This will affect the
and under ‘‘Special Services’’ below.         higher (e.g. ADC or mixed ADC) level of       treatment of pieces in situations where
                                              sack or on a 3-digit or higher (e.g., SCF,    there are fewer than 200 pieces
c. Rate Markings                              ADC) level of pallet.                         remaining in a mailing job after
   The abbreviation ‘‘PRSRT’’ will be            (2) Eligibility for In-County High         preparation of an Enhanced Carrier
permitted for the required ‘‘Presorted’’      Density Rates. Eligibility for the high       Route and/or an automation rate
marking.                                      density rate for In-County pieces will be     mailing, situations in which there are
4. Periodicals                                revised to allow walk-sequenced pieces        fewer than 200 pieces in a mailing job,
                                              for a carrier route to qualify when there     or situations in which the pieces are not
a. Rate Highlights                            are either a minimum of 125 pieces for        or may not be presorted. See ‘‘Mail
   There will be average rate increases of    the carrier route, or addressed pieces for    Preparation’’ below for further
4.6% for Regular, 1.1% for In-County,         at least 25 percent of the total active       information. It also affects the fees for
8.0% for Nonprofit, and 12.1% for             possible deliveries on the carrier route.     forwarding and return of Standard Mail
                 Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                          37951

(A) as described below under                   applicable Bound Printed Matter Rates        Presorted Standard (nonautomation 3⁄5
‘‘Forwarding and Return.’’ With one            were less than the applicable Standard       and basic) rates be counted toward the
exception, single pieces that weigh less       Mail (A) rates, the mailer could presort     minimum volume requirements for an
than 16 ounces will be subject to return       them as Standard Mail (A) flats and          Enhanced Carrier Route or an
postage at single-piece First-Class or         claim basic presorted Bound Printed          automation rate mailing. The pieces
Priority Mail rates multiplied by 2.472.       Matter rates. Under this example, if the     mailed at the Presorted Standard rates
The exception is that single pieces            pieces weighed four ounces and the           under this provision must meet all other
weighing less than 16 ounces that could        mailing was only for the local zone, the     requirements for those rates, including
qualify for single-piece Special Standard      Bound Printed Matter rates would be          the sortation and other preparation
Mail or Library Mail rates will continue       lower than the Presorted Standard Mail       requirements in M610. As prescribed in
to be eligible for those rates upon return     (A) rates. Therefore, the mailer could       DMM M610.1.1e, the pieces mailed at
if properly endorsed because there are         claim local zone Bound Printed Matter        the Presorted Standard rates must not
no minimum weight requirements for             rates if: (1) the pieces are presorted       bear any Enhanced Carrier Route or
those two subclasses of Standard Mail          according the Presorted Standard Mail        automation markings. Only ‘‘Presorted
(B).                                           (A) requirements to 5-digit, 3-digit,        Standard’’ (or, until January 10, 2001,
   (2) Residual Shape Surcharge. Pieces        ADC, and Mixed ADC (that are similar         ‘‘Bulk Rate’’), ‘‘Nonprofit Organization,’’
that are prepared as parcels or that are       to the presort requirements for presorted    or their applicable authorized
not letter-size or flat-size will be subject   Bound Printed Matter), (2) the pieces are    abbreviations may appear on pieces
to a $0.10 per piece residual shape            marked ‘‘Presorted’’ or ‘‘Presorted          mailed at the Presorted Standard rates.
surcharge in addition to the applicable        Standard’’ and ‘‘Bound Printed Matter,’’        Options two and three apply to
nonletter postage. This surcharge              and (3) documentation is submitted to        mailings that cannot qualify for the
applies to such pieces mailed at all           substantiate that the pieces qualified for   Presorted Standard Mail rates under the
Standard Mail (A) subclasses (Regular,         the local zone rate.                         above provisions for residual minimum
Enhanced Carrier Route, Nonprofit,                (3) Elimination of Single-Piece Rates.    volume. These might be mailings
Nonprofit Enhanced Carrier Route).             Currently, Standard Mail (A) single-         containing fewer than 200 pieces that
                                               piece rates apply to pieces that cannot      cannot be reported on the same postage
c. Mail Preparation
                                               meet the separate minimum volume             statement as other mailings in the
   (1) Bulk Rate Markings and                  requirement of 200 pieces for a              mailing job because the pieces have a
Nomenclature. Effective January 10,            Presorted Standard mailing either            different per piece weight (because of
2001, the basic rate marking                   because the mailing job itself contains      different editions in the same job). They
requirements for regular rate mailings         fewer than 200 pieces or because after       could also be pieces remaining after
(including Enhanced Carrier Route) will        preparing an Enhanced Carrier Route          sorting a mailing job that could not be
be changed from ‘‘Bulk Rate’’ or ‘‘Blk.        and/or automation mailing the pieces         matched to a correct 5-digit ZIP Code,
Rt.’’ to ‘‘Presorted Standard’’ or ‘‘PRSRT     remaining in the mailing job are fewer       or pieces that could not be barcoded and
STD.’’ During the two-year transition          than 200. Other instances where single-      sorted by a MLOCR because they bear
period, either the ‘‘Bulk Rate’’ or the        piece rates currently apply include          handwritten addresses and the mailer
‘‘Presorted Standard’’ markings or their       mailers using MLOCRs to prepare the          chose not to hand-sort the pieces. In
authorized abbreviations will be               mail who may have pieces remaining in        such instances, mailers must pay single-
acceptable. For consistency, the DMM           a mailing job that could not be matched      piece First-Class Mail or Priority Mail
will use the term ‘‘Presorted Standard         to a 5-digit ZIP Code, or mailers who        postage on the pieces.
Mail (A)’’ or ‘‘Presorted Standard’’ when      choose not to hand-sort handwritten             Option two is for mailers of such
referring to the mailings and rates            pieces that could not be barcoded and        pieces who desire to receive First-Class
currently referred to as ‘‘nonautomation       sorted by a MLOCR. The single-piece          or Priority Mail service (including
presort (3/5 and basic) Standard Mail          Standard Mail (A) rate is eliminated.        forwarding and return services) on such
(A).’’ At the mailer’s option the              Mailers will now have three options          pieces as applicable, based on the
‘‘Presorted Standard’’ or ‘‘PRSRT STD’’        concerning preparation and payment for       weight of the mailpieces. Under this
marking may be used instead of ‘‘Bulk          mailing pieces that formerly were paid       option, mailers must re-envelope the
Rate’’ effective immediately.                  at the single-piece Standard Mail (A)        pieces or initially prepare them so that
   (2) Markings for Standard Mail (A)          rates.                                       they bear only the proper First-Class
Matter Paid at Standard Mail (B) Rates.           Option one applies to pieces that         Mail or Priority Mail markings, ancillary
Effective January 10, 1999, mailings           remain in a mailing job after a mailer       service endorsements, ACS codes, etc.
paid at Standard Mail (B) rates under          has prepared an Enhanced Carrier Route       These pieces must not bear Standard
the exception in DMM E612.4.6 must             and/or an automation mailing. A new          Mail (A) markings, endorsements or
bear the appropriate Standard Mail (B)         provision in DMM E630.1.1 and 1.2 will       ACS codes. This option will also be
rate marking, not the applicable               allow pieces in an Enhanced Carrier          required for metered mailpieces
Standard Mail (A) rate marking. DMM            Route rate mailing and/or in an              weighing over 13 ounces, but less than
E612.4.6 contains provisions that allow        automation rate mailing that have each       16 ounces, that cannot be mailed under
Standard Mail (A) matter weighing less         separately met a 200-piece or 50-pound       option one.
than 16 ounces to pay Standard Mail (B)        minimum quantity requirement to be              Option three is for mailers who have
rates if those rates are lower than            counted toward the minimum quantity          pieces (other than metered pieces
Standard Mail (A) rates and the matter         requirement for a Presorted Standard (3⁄5    weighing over 13 ounces, but less than
and the mailing could qualify for the          and basic rate) mailing, provided that       16 ounces) that cannot qualify for the
Standard Mail (B) rate except for weight.      (1) the Enhanced Carrier Route rate          Presorted Standard Mail (A) rates, but
For example, if a mailer had flat-size         mailing and/or the automation mailing,       that are prepared as Standard Mail (A),
printed matter pieces that met the             and the Presorted Standard mailing are       and who do not desire to receive First-
qualifications for Bound Printed Matter        part of the same mailing job, and (2) the    Class Mail or Priority Mail service for
in DMM E630 (until January 10, DMM             mailings are all reported on the same        those pieces. Under this option the
E620) except that the pieces each              postage statement. Under no                  pieces may be submitted ‘‘as is’’ (i.e.,
weighed less than one pound, and if the        circumstances may pieces mailed at the       bearing the Standard Mail (A) markings
37952           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

and endorsements). No additional             5%. The discount will increase for              The barcoded discount reflects the
markings or postage are to be added to       sorting Bound Printed Matter to carrier      savings for parcels that are routinely
these pieces. Single-piece First-Class       route. Special Standard Mail rates will      processed individually on BMC parcel
Mail or Priority Mail postage must be        decrease. Library Mail rates will be the     sorters equipped with barcode readers.
paid for these pieces using the              same as Special Standard Mail rates,         Therefore, the discount will not be
appropriate First-Class or Priority Mail     resulting in a rate increase. The annual     available for nonmachinable parcels and
postage statement. Mail bearing metered      fees for destination bulk mail center        will not be available for parcels that are
or precanceled stamp postage must pay        (DBMC) rates and presorted Special           intended to bypass individual BMC
the difference between the postage           Standard Mail will increase from $85.00      sortation. The barcoded discount will
affixed at the Standard Mail (A) rates       to $100.00. The fee for pickup service       therefore not be available for: (1) any
and the single-piece First-Class Mail or     for Parcel Post will increase from $4.95     nonmachinable parcel, (2) Parcel Post
Priority Mail rates by means of an           to $8.25 per occurrence. (Pickup service     mail entered at destination sectional
advance deposit account or by affixing       is not available for mailings claiming       center facility (DSCF) rates, (3) Parcel
a meter strip for the appropriate amount     Parcel Post destination entry rates or       Post mail entered at destination delivery
to the postage statement. Mail bearing       Origin Bulk Mail Center (OBMC Presort)       unit (DDU) rates; (4) Parcel Post DBMC
permit imprints must pay the single-         Presort discounts.)                          rate mail entered at any auxiliary
piece First-Class or Priority Mail postage                                                service facility (ASF) other than the ASF
                                             b. Rate Structure for All Standard Mail
by completing the appropriate First-                                                      at Phoenix, AZ (which has barcode
                                             (B)
Class or Priority Mail postage statement.                                                 readers), (5) Bound Printed Matter at the
If the pieces weigh 13 ounces or less,          (1) Barcoded Discount. A discount of      Carrier Route rates, and (6) Presorted
mailers must use special line items          $0.03 per piece will apply to                Special Standard Mail at the 5-digit rate.
under Part C on the reverse side of Form     machinable pieces in mailings meeting           (2) Delivery Confirmation. A new
3600–R, Postage Statement—First-Class        a 50-piece minimum quantity                  delivery confirmation service will be
Mail Permit Imprint, or Form 3600–P,         requirement that bear a correct and          available for Standard Mail (B) in early
Postage Statement—First-Class Mail           properly prepared barcode representing       1999. See further details under ‘‘Special
Postage Affixed. The new line items on       the 5-digit ZIP Code (or, for UCC/EAN        Services.’’
the postage statements appear under the      Code 128, the ZIP+4 code) of the
                                             address on the mailpiece. Mail for each      c. Rate Structure for Parcel Post
heading ‘‘From Standard Mail (A).’’ If
                                             Standard Mail (B) subclass (Parcel Post,        (1) Presort Discounts for Inter-BMC
the pieces weigh over 13 ounces but less
                                             Bound Printed Matter, Special Standard,      Rates. A new Origin Bulk Mail Center
than 16 ounces, and are paid with
                                             and Library Mail) must separately meet       Presort (OBMC Presort) discount of
permit imprint, Form 3600–PM, Postage                                                     $0.57 per piece will be available for
                                             the 50-piece minimum volume
Statement—Priority Mail Permit                                                            mail entered at a BMC that meets
                                             requirement.
Imprint, must be appropriately                  The barcode specifications and clear      sortation criteria specific for the type of
completed to show that the pieces are        zone requirements are in DMM C850.           parcel. Machinable parcels must be
from a Standard Mail (A) mailing.            UCC/EAN Code 128 as well as USS              sorted to BMCs and nonmachinable
Option 3 may be used for permit              Code 128; USS Code I 2/5; and USS            parcels must be sorted to BMCs and
imprint mail only if there are at least      Code 39 symbologies will be permitted        ASFs. A new BMC Presort discount of
200 pieces to be mailed under this           until January 10, 2004. Beginning            $0.22 per piece will be available for
option, or if the pieces were part of a      January 10, 2004, only UCC/EAN Code          pieces that are sorted in the same
larger mailing job and are submitted for     128 will be permitted. For all barcode       manner as those qualifying for the
acceptance along with the mail and a         symbologies except UCC/EAN Code              OBMC Presort discount (sorted to BMCs
Standard Mail (A) postage statement for      128, the barcode must represent the          if machinable parcels or sorted to BMCs
the other pieces in the same mailing job.    correct 5-digit ZIP Code of the address      and ASFs if nonmachinable parcels) and
   d. Forwarding and Return. With two        on the mailpiece followed by the             entered at any postal facility other than
exceptions, charges for the forwarding       verifier character ‘‘9.’’ The UCC/EAN        a BMC that accepts bulk mailings. To
and return of Standard Mail (A) are paid     Code 128 barcode must represent either       qualify for either of these rates, pieces
at the First-Class Mail rates for pieces     the correct 5-digit ZIP Code or the ZIP+4    must be part of a mailing of at least 50
weighing 13 ounces or less and at the        code for the address on the mailpiece.       pieces mailed at Parcel Post rates. See
Priority Mail rates for pieces weighing      For the UCC/EAN Code 128 barcode, the        ‘‘Mail Preparation’’ below for more
over 13 ounces. This is because single-      ZIP Code information must be preceded        details.
piece Standard Mail (A) rates have been      by the Application Identifier ‘‘420’’ that      (2) Drop Shipment Rates. New
eliminated as discussed above. The           signifies a domestic ZIP Code, and must      destination delivery unit (DDU) rates
exceptions are (1) matter returned under     not include the trailing verifier            will be available for pieces entered at
Bulk Parcel Return Service (BPRS) and        character ‘‘9’’ used with the other          the delivery unit from which the parcels
(2) matter that qualifies for a single-      barcode symbologies. Mailers must print      are delivered. DDU rate pieces must be
piece Special Standard Mail or Library       human-readable characters representing       part of a mailing of at least 50 pieces
Mail rate under DMM E630 and is              the numeric equivalent of the ZIP Code       mailed at Parcel Post rates. New rates
endorsed to show that forwarding and         information in the barcode (i.e.,            will also be available for pieces entered
return is requested at one of those rates.   omitting the verifier character or, for      at the destination sectional center
6. Standard Mail (B)                         UCC/EAN Code 128, omitting the 3-digit       facility (DSCF). DSCF rate pieces must
                                             application identifier characters)           be part of a mailing of at least 50 pieces
a. Rate Highlights                           preceded by the word ‘‘ZIP’’ near the        mailed at Parcel Post rates. DSCF rate
   Some Parcel Post rates will decrease      barcode. An exception is that the            pieces must be sorted to 5-digit ZIP
and many will increase, some as much         numeric equivalent of the ZIP Code           Codes as described under ‘‘Mail
as 30%. New rate categories and              information in the barcode will not be       Preparation’’ below.
discounts will be added to Parcel Post       required if the barcode is on the same          (3) Balloon Rate. Any item weighing
as described in 6b below. On average,        label as the address block and is placed     less than 15 pounds and measuring over
Bound Printed Matter rates will increase     in close proximity to the address.           84 inches (but not more than 108
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                            37953

inches) in combined length and girth          must bear the new ‘‘Parcel Post’’ and          place the ‘‘Bound Printed Matter’’
will be charged the applicable Parcel         ‘‘Drop Ship’’ markings, or their               marking in the postage area. Effective
Post rate for a 15-pound parcel.              applicable abbreviations.                      January 10, 1999, mailers will be
  (4) Oversized Pieces. Pieces in a              Effective January 10, 1999, the Postal      permitted, but not required, to show the
Parcel Post mailing will be permitted to      Service is eliminating the requirement         ‘‘Presorted’’ or ‘‘PRSRT’’ (or ‘‘Presorted
measure over 108 inches, but not more         to show the 5-digit or 3-digit ZIP Code        Standard’’ or ‘‘PRSRT STD’’) marking on
than 130 inches, in combined length           of the post office of mailing in the drop      carrier route Bound Printed Matter in
and girth. These pieces will be charged       shipment marking if the postage for the        addition to the required ‘‘Bound Printed
new oversized rates which are higher          piece is paid with a permit imprint and        Matter’’ and ‘‘Carrier Route Presort’’ or
than the 70-pound rates.                      the office of mailing is in a different 3-     ‘‘CAR–RT SORT’’ markings.
                                              digit ZIP Code area from the post office
d. Markings                                                                                     The ‘‘Catalog’’ or ‘‘Catalog Rate’’
                                              in the return address. The requirement
   (1) General. Currently, mailers are        for a ‘‘Bulk Rate’’ marking also will be       marking will be eliminated for Bound
required to place subclass markings           eliminated. Mailpieces bearing the 3-          Printed Matter. Pieces bearing the
‘‘Bound Printed Matter,’’ ‘‘Special           digit ZIP Code of the office of mailing        ‘‘Catalog’’ or ‘‘Catalog Rate’’ markings
Standard,’’ and ‘‘Library Rate’’ or           and ‘‘Bulk Rate’’ markings will be             will be accepted until January 10, 2000.
‘‘Library Mail’’ (or authorized               accepted until January 10, 2000.                  (4) Special Standard. For Presorted
abbreviations) on pieces qualifying for          (3) Bound Printed Matter. Effective         Special Standard mail, the ‘‘Presorted’’
those rates. However, the Domestic Mail       January 10, 2000, the ‘‘Bound Printed          portion of the current marking will be
Manual does not clearly specify where         Matter’’ marking must appear in the
on the mailpiece these markings must                                                         permitted to be abbreviated ‘‘PRSRT’’
                                              postage area of single-piece rate mail.
appear. Effective January 10, 2000, the                                                      and to appear either in the postage area
                                              Until January 10, 2000, the ‘‘Bound
current required subclass markings                                                           or in the line above or two lines above
                                              Printed Matter’’ marking may appear
(‘‘Bound Printed Matter,’’ ‘‘Special          elsewhere on the mailpiece.                    the address. Effective January 10, 2000,
Standard,’’ and ‘‘Library Rate’’ or              The marking ‘‘Bulk Rate’’ or ‘‘Blk. Rt.’’   the ‘‘Special Standard’’ marking must be
‘‘Library Mail’’) or their authorized         will be changed to ‘‘Presorted’’ or            placed in the postage area.
abbreviations will be required to be          ‘‘PRSRT’’ for bulk Bound Printed Matter        f. Mail Preparation—OBMC Presort
placed in the postage area on each            mailings. The marking ‘‘Presorted              Discount
mailpiece (i.e., be printed or produced       Standard’’ or ‘‘PRSRT STD’’ also will be
as part of, or directly below, or to the      permissible. The ‘‘Presorted’’ or                 To qualify for the Origin Bulk Mail
left of the permit imprint indicia, meter     ‘‘Presorted Standard’’ portion of the          Center Presort (OBMC Presort) discount,
stamp or impression, or adhesive or           marking will be permitted to appear in         a mailpiece must be part of a mailing of
precanceled stamp). The Postal Service        either the postage area or in the line         at least 50 Parcel Post rate pieces. Pieces
prefers that mailers begin to do this as      above or two lines above the address.          eligible for the OBMC Presort rate must
soon as possible.                             Mailers will be given until January 10,        be entered at a BMC listed in DMM
   (2) Parcel Post Mail. Except for mail      2000, to begin using the new markings.         L601.
qualifying for drop shipment rates,           Between January 10, 1999 and January
mailers will have until January 10, 2000,     10, 2000, mailers may use either ‘‘Bulk           Machinable parcels at OBMC Presort
to place a ‘‘Parcel Post’’ or ‘‘PP’’ rate     Rate’’ or ‘‘Presorted’’ or their respective    rates must: (1) be sorted to BMCs using
marking in the postage area on all Parcel     authorized abbreviation. At the mailer’s       DMM labeling list L601 and, (2) be
Post Mail. Effective January 10, 1999,        option the ‘‘Presorted’’ marking may be        prepared in 69-inch pallet boxes placed
mailings qualifying for the new DSCF          used instead of ‘‘Bulk Rate’’ effective        on pallets, each labeled to a BMC and
and DDU drop shipment rates must bear         immediately. The name of the rate              each containing a minimum of 52
the marking ‘‘Drop Ship’’ or its              category also is changing from bulk            inches of mail. OBMC Presort
abbreviation ‘‘D/S’’ and the marking          Bound Printed Matter to presorted              machinable parcels must not be
‘‘Parcel Post’’ or ‘‘PP.’’ The ‘‘Parcel       Bound Printed Matter. At the mailer’s          prepared as parcels placed directly on
Post’’ or ‘‘PP’’ marking must appear in       option the ‘‘Presorted’’ marking may be        pallets. Overflow containers (pallets,
the postage area (printed or produced as      used instead of ‘‘Bulk Rate’’ effective        pallet boxes on pallets, or sacks) are not
part of, or directly below, or to the left    immediately. Between now and January           permitted.
of the permit imprint or metered              10, 2000, the marking ‘‘Bound Printed             Nonmachinable parcels at OBMC
postage) and the marking ‘‘Drop Ship’’        Matter’’ may appear either in the              Presort rates must: (1) be sorted to BMCs
or ‘‘D/S’’ must appear either in the          postage area or in the line above or two       and ASFs using new DMM labeling list
postage area or in the line above or two      lines above the address on presorted           L605 and, (2) be placed directly on
lines above the address as described in       Bound Printed Matter. Effective January        pallets (no pallet boxes on pallets are
DMM M012. DBMC rate mail will also            10, 2000, the ‘‘Bound Printed Matter’’         allowed), each labeled to a BMC or ASF
be required to bear the ‘‘Drop Ship’’ and     marking on presorted Bound Printed             and each pallet containing at least 42
‘‘Parcel Post’’ markings or authorized        Matter must appear in the postage area.        inches of mail. Overflow containers
abbreviations according to these                 For carrier route Bound Printed
                                                                                             (pallets, pallet boxes on pallets, or
placement rules. However, since DBMC          Matter, the need for the ‘‘Bulk Rate’’
                                                                                             sacks) are not permitted.
rate mail is currently required to bear       marking in addition to the ‘‘Carrier
the marking ‘‘DBMC Parcel Post,’’ the         Route Presort’’ marking will be                   Pallets and pallet boxes also must
Postal Service is allowing mailers a one-     eliminated effective January 10, 1999.         meet the provisions of M041. The
year grace period to convert to the new       Carrier route Bound Printed Matter             minimum height of mail in a pallet box
marking. From January 10, 1999, to            mailings must show ‘‘Bound Printed             on a pallet (machinable parcels) or of
January 10, 2000, DBMC rate mailers           Matter’’ in the postage area and ‘‘Carrier     mail placed directly on a pallet
may use either ‘‘DBMC Parcel Post’’ or        Route Presort’’ or ‘‘CAR–RT SORT’’ in          (nonmachinable parcels) is measured
‘‘Parcel Post’’ and ‘‘Drop Ship’’ (or their   the postage area or in the line above or       from the top of the pallet to the top of
applicable abbreviations). Effective          two lines above the address. Mailers           the lowest mailpiece (i.e., excludes the
January 10, 2000, DBMC Parcel Post            will be given until January 10, 2000, to       height of the pallet).
37954            Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

g. Mail Preparation—BMC Presort                mailing exclusively under the following        the Area Manager, Operations Support,
Discount                                       alternate pallet preparation option. The       an exception to the requirement to drop
  To qualify for the BMC Presort               minimum number of pieces on a 5-digit          palletized mail for the ZIP Codes in
discount, a piece must meet the same           pallet (including a pallet box on a            Exhibit E652.5 at the BMC. Such
rules for sorting machinable parcels to        pallet) may be 35 pieces and 200               exceptions must be requested at least 15
BMCs and nonmachinable parcels to              pounds provided that within the                days in advance and may only be
BMCs and ASFs as required for the              mailing the average number of DSCF             granted for a limited time.
                                               pieces per 5-digit pallet is at least 50. To      In addition, there are certain associate
OBMC Presort discount above. The
                                               substantiate that no pallet contains less      post offices that cannot handle pallets.
difference is that BMC Presort mail may
                                               than 35 pieces and 200 pounds and that         A list of these facilities is found in the
be entered at any postal facility (other
                                               the average number of DSCF pieces per          Drop Shipment Product currently
than a BMC in DMM L601) that accepts                                                          available from the National Customer
                                               5-digit pallet in the mailing is at least 50
bulk mailings.                                                                                Support Center (NCSC) in Memphis, TN
                                               pieces, mailers must submit
h. Mail Preparation—DSCF Rate                  documentation that lists each pallet in        (1–800–238–3150). For these 5-digit ZIP
                                               sequential order by pallet identification      Codes, the DSCF rate will be available
   To qualify for the DSCF rate, a piece
                                               number. For each 5-digit pallet                only for mail that can be prepared in 5-
must be part of a mailing of at least 50
                                               containing mail claimed at the DSCF            digit sacks as described above (i.e., the
Parcel Post rate pieces and must be
                                               rates the documentation must show: the         DSCF rate will not be available for
presorted to 5-digit ZIP Code
                                               unique pallet identification number, the       palletized mail for 5-digit delivery units
destinations. Pieces eligible for the
                                               5-digit ZIP Code of the pallet, the total      that cannot handle pallets).
DSCF rate must be entered at an SCF                                                              In instances where the Drop Shipment
listed in DMM L005 and must be for             weight of pieces on the pallet, the total
                                               number of pieces on the pallet, and the        Product shows that mail for a single 5-
delivery within the service area of the                                                       digit ZIP Code area is delivered from
                                               cumulative total of pieces (i.e., the
entry SCF. For palletized mail only,                                                          more than one facility, the facility listed
                                               number of pieces on that pallet plus the
certain 5-digit ZIP Codes listed in DMM                                                       in the Drop Shipment Product that
                                               sum of the pieces on all 5-digit pallets
Exhibit E652.5.0 must be entered at the                                                       delivers mail to the majority of city
                                               qualifying for the DSCF rates listed
BMC facility serving the SCF.                                                                 carrier routes will be considered the
                                               before it). Under this alternate pallet
   To qualify for the DSCF rates the                                                          delivery unit for parcel post. Two
                                               option, overflow from a full 5-digit
pieces must be presorted and labeled to                                                       exhibits, Exhibits E652.6.0 and E652.7.0
                                               pallet may be placed in 5-digit sacks or
5-digit sacks or 5-digit pallets (including                                                   that contain exceptions to the ‘‘majority
                                               may be palletized. If the overflow is
pallet boxes on pallets). Machinable and                                                      of city carriers’’ rule, are also added to
                                               placed in a 5-digit sack, it will be
nonmachinable parcels may be                                                                  the DMM. If a 5-digit ZIP Code is listed
                                               eligible for the DSCF rates. If the
combined in the same sack or on the                                                           in DMM Exhibit E652.6.0 or E652.7.0,
                                               overflow is placed on a 5-digit pallet, it
same pallet (or same pallet box on a           is subject to the DBMC rates. Mailers          the facility listed in one of those
pallet) to meet the minimum sortation          using this 50-piece average-per-pallet         exhibits must be used to determine the
requirements. If sacked, each 5-digit          alternative must exclude pieces that are       name of the delivery unit. The name of
sack must contain a minimum of 7               prepared as overflow under any of the          the delivery unit must then be looked
pieces, except that one overflow sack          foregoing methods (sacked or palletized)       up in the Drop Shipment Product to
per 5-digit ZIP Code that contains fewer       from the computation (documentation)           determine if mail for it, and therefore
than 7 pieces is allowed. If palletized,       that the 50-piece per pallet average is        mail for the 5-digit ZIP Code, can be
each 5-digit pallet (including pallet          met.                                           prepared on pallets to qualify for the
boxes on pallets) in the mailing must             For any palletization option, mailers       DSCF rate. At some point in the future
meet one of the following basic                may place parcels directly on pallets or       the information in these two exhibits
minimum preparation requirements: (1)          in pallet boxes on pallets. If pallet boxes    will be incorporated in the Drop
contain at least 50 pieces and 250             are used they must not exceed 60 inches        Shipment Product.
pounds of mail, or (2) contain at least 36     in height and must otherwise meet the             Nonmachinable outside (NMO)
inches of mail (height of mail excluding       provisions for pallet boxes in DMM             parcels by definition cannot be prepared
pallet). Overflow from a full 5-digit          M041. All pallets must meet the                in sacks because they will not fit in a
pallet may be placed in 5-digit sacks or       provisions of DMM M041.                        sack. Therefore, NMOs must be
may be palletized. If the overflow is             Under any palletization option, the         prepared directly on pallets or in pallet
placed in a 5-digit sack it will be eligible   following additional requirements or           boxes on pallets as described above to
for the DSCF rates. If the overflow is         restrictions also apply. Currently, many       qualify for the DSCF rates. If overflow
placed on a 5-digit pallet it is subject to    BMCs transport mail for certain 5-digit        pallets are prepared, the pieces on such
the DBMC rates. Pallets prepared under         ZIP Code areas directly to the 5-digit         pallets are subject to the DBMC rates.
the piece and pound minimum and                associate post office. A list of these 5-      The DSCF rate is not available for NMOs
pallets prepared under the minimum             digit areas is found in DMM Exhibit            at those facilities listed in the Drop
height requirement may both be                 E652.5.0. Five-digit pallets prepared for      Shipment Product, and Exhibits
combined in a single mailing. Sacked           the DSCF rate for the 5-digit ZIP Codes        E652.6.0 and E652.7.0, as unable to
mail and mail palletized according to          listed in this exhibit must be entered at      handle palletized mail.
either of the minimum quantity options         the BMC, not at the SCF, to qualify for           The Postal Service will unload
listed above also may be included in the       the DSCF rate. This will avoid                 palletized loads for DSCF rate mail.
same mailing, provided that at the time        additional handling and transportation         Mailers must unload sacked and
of verification the mailer separates sacks     of this mail at the affected SCFs.             bedloaded mailings. A provision has
that are overflow from the palletized          However, sacked mail for the 5-digit ZIP       been added to allow mailers to prepare
portion of the mailing from sacks that         Codes listed in Exhibit E652.5.0 must          5-digit sacks qualifying for the DSCF
were prepared under the provisions for         always be entered at the SCF (not at the       rate on SCF pallets. Such SCF pallets
sacking mail.                                  BMC). There is one exception to this           have no minimum pallet weight and
   If mailers can provide certain              rule provided for in DMM E652.1.3.             may be prepared without having to first
documentation, they also may prepare a         This rule allows a mailer to request from      prepare all possible 5-digit pallets. A
                 Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                         37955

special pallet label is prescribed for this   appointment through the district control       Therefore, removing references to ‘‘Bulk
mail in M045.12.                              center. Standing appointments may be           Parcel Post’’ rates in DMM E620 will
  Except for local mailings,                  made if shipment frequency is weekly           reduce confusion in the eligibility
appointments for dropping any                 or more frequently. The grace period for       section for Parcel Post rates in new
Standard Mail (B) at an SCF must be           late arrivals will be 20 minutes.              DMM E630. As indicated above, the
scheduled through the appropriate                                                            Postal Service also will be removing the
district control center (see DMM E652).       j. Destination Entry Mail Preparation—
                                                                                             requirement to mark pieces with a
                                              Plant-Verified Drop Shipment (PVDS)
i. Mail Preparation—DDU Rate                                                                 ‘‘Bulk Parcel Post’’ rate marking. New
                                                 Pieces must be part of a mailing of at      DMM E630.6.0 is reserved for any future
   To qualify for the DDU rate, a piece       least 50 Parcel Post rate pieces to qualify    rates and requirements for the Bulk
must be part of a mailing of at least 50      for DDU, DSCF, and DBMC rates and to           Parcel Post classification.
Parcel Post rate pieces. Pieces eligible      qualify for OBMC Presort, BMC Presort,
for the DDU rate must be entered at the       and barcoded discounts. When Parcel            7. Special Services
postal facility where the carrier who         Post rate pieces are submitted under           a. Address Correction
delivers the parcel is located. A list of     PVDS procedures, mailers may use the
these facilities and their telephone                                                            No changes will be made to address
                                              total of all line items for all destinations
numbers are in the Drop Shipment                                                             correction service fees. They will
                                              on a PVDS register or PVDS postage
Product currently available from the                                                         remain at $0.50 for manual corrections
                                              statement to meet the minimum 50-
National Customer Support Center                                                             and $0.20 for automated (ACS)
                                              piece volume requirement. This means
(NCSC) in Memphis, TN, 1–800–238–                                                            corrections, per notice issued.
                                              a mailer may enter fewer than 50 pieces
3150. In instances where the Drop             at an individual destination, provided         b. Address Changes for Election Boards
Shipment Product shows that a 5-digit         there is a total of at least 50 Parcel Post       No changes will be made to the fee.
area is served by more than one facility,     rate pieces for all of the entry points for    It will remain $0.17. See DMM
the facility that delivers mail to the        that single mailing job listed on the          R900.10.3.
majority of city carrier routes should be     PVDS register or PVDS postage
used for purposes of determining where        statement.                                     c. Business Reply Mail (BRM)
to enter a destination delivery unit                                                            (1) Fees and Per-Piece Charges. The
mailing. Exceptions to that general rule      k. Bulk Parcel Post
                                                                                             annual permit fee will increase from
are those ZIP Codes listed in DMM                Bulk Parcel Post is a ‘‘shell’’             $85.00 to $100.00, and the annual
Exhibit E652.6.0 and in Exhibit               classification of Standard Mail (B) for        accounting fee will increase from
E652.7.0. If a ZIP Code appears in DMM        which there are no separate rates              $205.00 to $300.00. For regular BRM,
Exhibit E652.6.0 or Exhibit E652.7.0, the     prescribed. Current DMM E620.2.4e              mailers will pay the applicable First-
mail must be entered at the delivery          states that ‘‘the bulk Parcel Post rate is     Class Mail rates plus a per-piece charge.
unit listed in the exhibit for that ZIP       the rate applicable to each piece in a         The per-piece charge for regular BRM
Code.                                         bulk Parcel Post rate mailing at the           with an advance deposit account will
   There are no specific sortation            single-piece rate or DBMC rate for that        decrease from $0.10 to $0.08. The per-
requirements for the DDU rates other          zone for an item equal to the average          piece charge for regular BRM without an
than the requirement that mail must be        weight per piece for all parcels in the        advance deposit account will decrease
separated by 5-digit ZIP Code when            mailing to that zone, rounded up to the        from $0.44 to $0.30.
unloaded at a DDU facility. Mailers may       next whole pound.’’ This DMM section              (2) Qualified Business Reply Mail. A
choose to sack or palletize DDU rate          therefore establishes a method of              new classification category and rate
pieces. If so, there are no minimum sack      computing postage at Parcel Post rates.        structure will be added for qualified
or pallet requirements but the sack or        For mailings of identical weight pieces,       business reply mail (QBRM) that must
pallet must be labeled as a 5-digit sack      this averaging method is irrelevant,           be letter-size, automation-compatible,
or pallet. Mailers may present mail to        because the average weight of all the          and barcoded. As a result, the BRMAS
the DDU prepared in pallet boxes on           pieces to a zone is always the weight of       fee category will be eliminated. The
pallets provided the pallet boxes do not      a single piece. For mailings of                First-Class rate structure for QBRM
exceed 60 inches in height and                nonidentical weight pieces, DMM                includes a lower single-piece first-ounce
otherwise meet the provisions of M041.        E620.2.2b states that this method of           rate of postage of $0.30 for letters and
The Drop Shipment Product and DMM             postage payment may be used only if            $0.18 for cards. The fee structure
Exhibits E652.6.0 and E652.7.0 may be         authorized by the rates and                    requires an annual BRM permit fee, an
used to determine which postal                classification service center (RCSC)           annual BRM accounting fee, and for
facilities can handle pallets. If the         serving the post office of mailing. The        each piece returned a $0.05 per-piece
facility cannot handle a pallet, and mail     Postal Service is removing sections            BRM charge.
is transported to the facility on pallets,    E620.2.2 and E620.2.4e from the DMM.              (3) Mailpiece Design and Barcoding
the mailer must unload the mail from          Postal Service Headquarters is not aware       Requirements. Mailpiece design and
pallets into a container as specified by      of any mailer that is currently                barcoding requirements will be revised
the delivery unit.                            authorized to use this method of postage       for both regular BRM and QBRM.
   The mailer will be responsible for         payment. If in fact there are mailers          Regular BRM pieces that bear a barcode
unloading all DDU loads (even if              using this method, they may request            and QBRM pieces that bear a barcode
palletized). If palletized and the pallets    that their RCSC issue an authorization         will be required to meet the automation
are stacked, the mailer will be               for continuation of their postage              letter mailpiece design requirements in
responsible for unloading, unstacking,        payment procedure as an alternate              DMM C810 (except C810.7.1) and the
and removing the strapping material           mailing system under DMM P730. The             barcoding standards in C840 so that
from the pallets. Appointments for entry      Postal Service is implementing various         there are uniform requirements for all
must be made by contacting the DDU at         new rates and discounts for Parcel Post        mail that is processed on barcode
least one day in advance. Mailers             that could be considered ‘‘bulk rates’’        sorters.
desiring electronic confirmation of DDU       because they require a minimum                    For barcoded and nonbarcoded BRM,
mail entry also must schedule the             volume of 50 pieces per mailing.               references to mailpiece design
37956           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

requirements in DMM C810 and C830            delivery address line of a prebarcoded      Mail and Priority Mail may be insured,
will replace current BRM standards           BRM or QBRM mailpiece, provided the         mailpieces formerly mailed at single-
relative to reflectance requirements,        logo is placed no lower than 5⁄8 inch       piece Standard Mail (A) rates will retain
paper weight, tabs and self-mailers. This    from the bottom edge of the mailpiece       their eligibility for insurance when
will add basis weight, tabbing, and other    and does not interfere with the barcode     mailed at First-Class Mail or Priority
requirements for all self-mailers. It is     clear zone.                                 Mail rates.
likely that self-mailers will be processed                                                  In addition, a bulk insurance service
on automated equipment. Meeting these        d. Carrier Sequencing of Address Cards      discount of $0.40 per piece is
requirements will ensure their ability to      The fee will increase from $0.17 to       introduced. To be eligible for the bulk
be processed without damage. QBRM            $0.20. See DMM R900.1.0.                    insurance service discount, mailers
and other barcoded mailpieces must                                                       must (1) enter mailings of insured
                                             e. Certificate of Mailing                   articles under an approved manifest
meet all the mailpiece design
requirements in C810 except the                The fees will increase. See DMM           mailing system agreement, (2) mail a
requirement in C810.7.1. The basis           R900.4.0.                                   minimum of 10,000 insured articles
weight requirement for envelopes in                                                      annually (a total of all insured articles
                                             f. Certified Mail
C810.7.1 will not apply to BRM. BRM                                                      mailed at multiple locations), (3)
envelopes, including QBRM, must                The fee will increase from $1.35 to       provide a hard copy of Form 3877, Firm
continue to meet the current minimum         $1.40. See DMM R900.5.0.                    Mailing Book for Accountable Mail, or
paper basis weight of 20 pounds                                                          facsimile and (4) provide a copy of Form
                                             g. Collect on Delivery (COD)
(measured using 500 sheets of 17- by 22-                                                 3877 on a diskette or other electronic
inch paper). In addition, the standard in      COD fees will increase. See DMM           medium. Mailers must submit an
current S922.6.4 that envelope material      R900.6.0. The standards in DMM S921         application for bulk insurance to their
must not have a phosphorescence              will also be revised to remove references   local postmaster or designee. The local
exceeding 4.0 phosphor meter units is        to the availability of COD with single-     postmaster or designee will approve or
retained and corrected to state that         piece Standard Mail (A).                    deny the application. Authorized
envelope material must not have a red        h. Correction of Mailing Lists              mailers will be provided instructions for
fluorescence exceeding 4.0 phosphor                                                      filing claims under the bulk insurance
meter units. Mailers will have until           The per-correction fee will be            service by the local postmaster or
January 10, 2001, to comply with the         increased from $0.17 to $0.20 and the       designee. When systems that
requirement in DMM C810.2.1c that            minimum per-list fee is increased from      electronically capture information on
Qualified Business Reply Mail pieces         $5.50 to $7.00. See DMM R900.10.1.          accountable mail are completed and
and other BRM pieces that bear a             i. Delivery Confirmation                    programming changes that will tie the
barcode and measure more than 41⁄4                                                       St. Louis ASC into these systems are
inches by 6 inches meet a minimum              A new delivery confirmation service       completed, mailers will be required to
thickness requirement of .009 inch.          will be available for Priority Mail and     file claims electronically using a new
   Mailers currently have the option of      Standard Mail (B) in early 1999. This       (soft) electronic format for the Form
preparing pieces with lower right            service, when available, will provide the   3877. When or before these changes and
barcodes according to the standards in       mailer with information about the date      systems are completed, bulk insurance
C840. They also currently have the           of delivery or attempted delivery. This     mailers will be provided with
option of preparing the pieces so that       service will be available in two forms:     instructions for a new format for the
the left boundary of the barcode clear       (1) an electronic option for mailers who    electronic Form 3877 and with
zone and of a lower right barcode            apply identifying barcodes to each          instructions for electronically filing
window is 1⁄4 inch closer to the right       piece, provide an electronic manifest,      claims.
edge of the mailpiece than required          and retrieve confirmation information
                                             electronically; and (2) a retail (manual)   l. Merchandise Return Service
under C840, and to place the leftmost
bar of a lower right barcode 1⁄4 inch        option for which delivery information          The annual permit fee will increase
closer to the right edge of the mailpiece    will be available through a USPS            from $85.00 to $100.00. The charge per
than required under C840. The revised        Internet address or a toll-free number.     returned mailpiece remains at $0.30.
standards will no longer permit mailers      Signature (electronic return receipt)       Revisions are made to the postage that
to use the option that does not meet the     service also will be available in early     is applicable to pieces returned that
DMM C840 requirements. However,              1999.                                       weigh less than 16 ounces and to the
mailers will be given until January 10,                                                  marking requirements that specify the
                                             j. Express Mail Insurance                   return rate of postage. These changes
2001, to use existing stocks of such
prebarcoded BRM envelopes and cards            The fees for merchandise insured for      will be necessary because of the
that: (1) Have a barcode clear zone with     $500.01 to $5,000.00 will increase. See     elimination of single-piece Standard
a left boundary that is 41⁄2 inches from     DMM R900.8.0.                               Mail (A) rates. Matter bearing a
the right edge of the piece (not 43⁄4                                                    merchandise return label without a
                                             k. Insured Mail                             preprinted rate marking will be returned
inches as required in C840); (2) have a
lower right barcode for which the               The fees for insurance service will      at: (1) the Parcel Post rate if it weighs
leftmost bar is located between 31⁄4 and     increase. See DMM R900.9.0. The DMM         16 ounces or more, (2) the Priority Mail
4 inches from the right edge of the piece    provisions in S913 will be revised to       rates if it weighs over 13 ounces but less
(not between 31⁄2 and 41⁄4 inches as         delete the applicability of insurance to    than 16 ounces, and (3) the First-Class
required under C840); (3) have a lower       single-piece Standard Mail (A). Since       Mail rates if it weighs 13 ounces or less.
right barcode window, that has a left        single-piece Standard Mail (A) will be      If the permit holder desires matter to be
boundary measuring 41⁄2 inches from          eliminated, mail that was formerly          returned the Special Standard, or
the right edge of the piece (not 43⁄4        mailed at those rates will be subject to    Library Mail rates, the permit holder
inches as required under C840).              single-piece First-Class Mail or Priority   will be required to preprint the
   The revised standards also will allow     Mail rates as applicable for the weight     appropriate rate marking on the label. If
a company logo to appear beneath the         of the mailpiece. Because First-Class       the permit holder desires matter
                    Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                       37957

weighing 13 ounces or less or matter         s. Restricted Delivery                       organized by general comments and
weighing 16 ounces or more to be                The restricted delivery fee will not      then by class of mail and special
mailed at the Priority Mail rates, the       change (it remains $2.75).                   service.
mailer will be required to preprint the
                                             t. Return Receipt                            1. General Comments
Priority Mail marking on the
merchandise return label. It is                 Fees for return receipt will increase        Three comments were received
recommended but not required that            from $1.10 to $1.25 when requested at        concerning the implementation date of
matter to be returned at the First-Class     time of delivery and from $6.60 to $7.00     the new rates, fees, and classifications.
Mail, Priority Mail, or Parcel Post rates    when requested after mailing.                Each commenter indicated that the
bear the applicable preprinted marking                                                    implementation date should allow time
‘‘First-Class’’ or ‘‘First-Class Mail,’’     u. Return Receipt for Merchandise            for mailers to make software changes.
‘‘Priority Mail,’’ or ‘‘Parcel Post’’ (or       The fee for return receipt for            Suggested dates ranged from 90 days to
‘‘PP’’).                                     merchandise will increase from $1.20 to      8 months after the Board of Governors’
                                             $1.40, and the fee for a delivery record     decision. The implementation date for
m. Money Orders                                                                           Docket No. R97–1 is determined by the
                                             will increase from $6.60 to $7.00. DMM
  The fee for domestic money orders          S917 will be revised to delete the           Board of Governors of the Postal Service
will be reduced from $0.85 to $0.80. The     availability of this service with single-    and is outside the scope of this
fee for a postal military money order        piece Standard Mail (A), because single-     rulemaking process. Postal management
will remain at $0.30 and the inquiry fee     piece Standard Mail (A) will be              did however, consider these comments
will remain at $2.75.                        eliminated.                                  when it provided advice to the Board of
                                                                                          Governors concerning the effective
n. On-Site Meter Settings                    v. Special Handling                          dates.
                                                There will be no change to the fees for      Various comments also were received
   There will be increases to two of the
                                             special handling ($5.40 for matter           that requested changes to rates and fees.
on-site meter setting fees. The fee for an
                                             weighing not more than 10 pounds and         One commenter requested that the
additional meter setting will increase
                                             $7.50 for matter weighing more than 10       revised rates not apply to his company
from $3.25 to $4.00, and the fee for
                                             pounds). In addition, DMM S930.1 will        for two to five years. These comments
checking a meter in and out of service
                                             be revised to conform to the Domestic        are beyond the scope of this rulemaking.
will increase from $7.50 to $8.50. No
                                             Mail Classification Schedule (DMCS) by       The rates, rate structure, and basic
increases will be made to the scheduled
                                             making it clear that special handling        standards for rates in Docket No. R97–
appointment setting fee for the first
                                             may be used with First-Class Mail and        1 were subject to litigation before the
meter ($27.00) or to the unscheduled or
                                             Priority Mail.                               Postal Rate Commission and cannot be
emergency setting fee for the first meter
                                                                                          revised unilaterally by the Postal
($31.00).                                    w. Stamped Cards                             Service in a rulemaking process.
o. Parcel Airlift                               A $0.01 fee per stamped card and a           Three commenters requested that a
                                             $0.02 fee per double stamped card will       single item not be subject to both a
  There will be no changes to parcel                                                      hazardous medical materials and an
airlift fees ($0.40 for up to two pounds,    be added to cover manufacturing and
                                             printing costs. A fee of $0.40 will be       other hazardous materials surcharge. As
$0.75 for over two up to three pounds,                                                    the PRC did not recommend the
$1.15 for over three up to four pounds,      added to the price of a sheet of 40
                                             stamped cards. This is consistent with       proposed hazardous materials
and $1.55 for over four pounds).                                                          surcharges, these comments will not be
                                             the existing fee structure for stamped
p. Permit Imprint                            envelopes, where customers are charged       addressed.
                                             postage plus a small fee for the envelope       One commenter indicated that the
  The application fee for permit                                                          Postal Service should re-solicit
imprints will increase from $85.00 to        itself.
                                                                                          comments for any items that were
$100.00.                                     x. Stamped Envelopes                         affected by the PRC decision. Because
q. Post Office Boxes, Caller Service, and       The fees for some stamped envelopes       the Postal Service cannot revise rates
Reserve Call Numbers                         will increase and others will decrease.      and DMCS language that is
                                             In addition, the fee structure will be       recommended by the PRC and approved
  Post office box fees (except the $0 fee    simplified: except for hologram stamped      by the Governors of the Postal Service,
for all box sizes in Group E) will           envelopes, all stamped envelopes will        it does not believe that soliciting
increase. Fees for caller service and        be grouped together by size and whether      comments on such items would have
reserve call numbers also will increase      they are plain or printed.                   any value.
(see R900.3.0 and DMM R900.16.0).
                                             y. ZIP Coding of Mailing Lists               2. Priority Mail
r. Registered Mail
                                                Fees will increase from $60.00 to            One commenter requested
  The maximum value level for                $70.00 per 1,000 addresses or fraction       clarification as to whether Priority Mail
registered mail without postal insurance     thereof.                                     must always bear the ‘‘Priority Mail’’
will be decreased from $100.00 to $0.00.                                                  marking. This commenter further asked
All registered mail with a value of $0.01    C. Summary of Comments From the              whether the ‘‘Priority Mail’’ marking
or more will be automatically provided       March 16, 1998, Proposed Rule                will delay the mail when deposited in
with insurance (up to a maximum                The Postal Service received 32 pieces      an overnight First-Class Mail area and,
indemnity of $25,000 per piece).             of correspondence offering comments          if so, could such mail pieces be marked
Insurance coverage is included in the        on the March 16, 1998, proposed rule.        ‘‘First-Class’’ instead of ‘‘Priority Mail.’’
applicable registered mail fee. Only mail    Respondents included five major mailer       Priority Mail must always bear the
of no value may be mailed as uninsured       associations; 24 publishers, printers,       marking ‘‘Priority Mail’’ or ‘‘Priority.’’
registered mail. In addition, registered     and mailers; and three individuals.          This marking is used to ensure that mail
mail fees will increase (see DMM               The specific points raised in the          is placed in and processed through the
R900.18.0).                                  comments are presented below,                Priority Mail network and to collect cost
37958           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

and revenue data through the Postal           reproduced in this final rule to make it     Standard mailing are part of the same
Service’s statistical sampling systems.       clear that this policy has not changed.      mailing job, and (2) the mailings are all
Deployment of the Priority Mail                  One commenter indicated that it           reported on the same postage statement.
Processing Center (PMPC) network has          appeared the Postal Service intends to          One commenter asked what DMM
affected overnight service standards for      revise current rules in DMM F010.6.1 to      section E612.4.6 means. DMM E612.4.6
some ZIP Codes. While the vast majority       require that Periodicals mail with a         contains provisions that allow Standard
of service standard changes have              nonincidental First-Class attachment be      Mail (A) matter weighing less than 16
resulted in improved service, there are,      returned to the mailer. The Postal           ounces to pay Standard Mail (B) rates if
as the commenter suggests, a small            Service revisions to DMM F010.6.1 in         those rates are lower than Standard Mail
number of 5-digit ZIP Code areas that         both the proposed and this final rule        (A) rates and the matter and the mailing
may experience two-day service instead        revise only the rate of postage at which     could qualify for the Standard Mail (B)
of overnight. However, the Postal             such pieces are returned from the            rate except for weight. For example,
Service does not plan to waive the            single-piece Standard Mail (A) rate to       suppose a mailer had flat-size printed
marking requirement for pieces mailed         the First-Class or Priority Mail rate as     matter pieces that met all of the
in such 5-digit ZIP Code areas.               applicable for the weight of the piece.      qualifications for Bound Printed Matter
                                              Postal Service policy for some years has     except that the pieces each weighed 4
3. First-Class Mail                           provided that Periodicals pieces with        ounces and therefore did not meet the
   Two commenters requested that the          nonincidental First-Class Mail               requirement of weighing at least one
Prepaid Reply Mail proposal should not        attachments be returned. However,            pound. In such an instance the mailer
be implemented because of                     Periodicals pieces with incidental First-    could presort the pieces as Standard
administrative complexity and costs to        Class Mail attachments, as defined in        Mail (A) flats and claim basic presorted
the mailer. For other reasons, the            DMM M070.5.0, are treated as dead mail       Bound Printed Matter rates if those rates
Governors did not approve Prepaid             unless endorsed ‘‘Address Service            were less than the applicable Standard
Reply Mail.                                   Requested.’’ To avoid confusion, in Part     Mail (A) rates. The mailer could presort
   One commenter supported the                D of this final rule, the Postal Service     the pieces according to the Presorted
provision allowing ‘‘Presorted’’ to be        has published DMM F010.6.1 in its            Standard Mail (A) requirements to 5-
abbreviated ‘‘PRSRT’’ when used in the        entirety to show the treatment of            digit, 3-digit, ADC, and mixed ADC,
‘‘Presorted First-Class’’ marking.            incidental First-Class attachments as        which are similar to the presort
Another commenter was concerned that          well as treatment of nonincidental First-    requirements for presorted Bound
it appeared the revised DMM M012.2.1a         Class attachments.                           Printed Matter, and claim the local zone
required single-piece First-Class Mail to        One commenter indicated that the          Bound Printed Matter rates provided the
bear a ‘‘First-Class’’ marking. The Postal    current interpretation of ‘‘mailing’’ for    mailer marked the pieces ‘‘Presorted’’ or
Service has revised DMM M012 to make          Periodicals allows mailers to treat and      ‘‘Presorted Standard’’ and ‘‘Bound
it clear that single-piece First-Class Mail   report mail for different rate categories,   Printed Matter’’ and submitted
is not required to bear a rate marking.       including automation mail, carrier route     documentation to substantiate that the
                                              mail, and other non-automation mail, as      pieces qualified for the local zone rate.
4. Periodicals
                                              one ‘‘mailing.’’ This commenter asked if        One commenter requested that the
   Two commenters suggested that for          the proposed definition of a mailing in      Postal Service not apply the residual
clarity, proposed DMM E230.3.0b and           DMM M011.1.4 would require that a            shape surcharge to Enhanced Carrier
E230.4.0b concerning eligibility for 5-       separate mailing statement be prepared       Route rate merchandise samples
digit and 3-digit presort rates be revised    for each rate category of Periodicals        prepared with detached labels. The
to indicate that 5-digit and 3-digit          mail. The DMM currently does not             Postal Rate Commission recommended
packages of 6 or more pieces may be           allow preparation of automation, carrier     and the Governors of the Postal Service
palletized under M045 to obtain the 5-        route, and other non-automation mail in      approved a residual shape surcharge for
digit and 3-digit presort rates. The          a single ‘‘mailing.’’ Separate presort and   Enhanced Carrier Route mail. Since
Postal Service has adopted this               eligibility requirements are prescribed      these provisions are in the Domestic
suggestion.                                   for each of these rate categories.           Mail Classification Schedule to take
   Two commenters suggested that the          However, each of these rate categories       effect January 10, 1999, the Postal
forwarding rules table in DMM                 are permitted to be reported on a single     Service cannot unilaterally change these
F010.5.2g should be clarified so it does      postage statement for a single               provisions. Therefore, merchandise
not appear that use of ACS will always        publication and edition. To clarify that     samples at the Enhanced Carrier Route
result in the return of the mailpiece.        the current practice continues to be         rates will be subject to the residual
One of these commenters suggested that        permitted, a new section DMM                 shape surcharge.
it would be clearer if the entire chart in    M011.1.4d has been added concerning             One commenter requested that the
this DMM section had been reproduced          ‘‘mailings’’ of Periodicals.                 Postal Service revise the rule placed
so that it was clear that footnote 1                                                       into effect under Classification Reform
stating ‘‘Valid for all pieces, including     5. Standard Mail (A)                         that allows mail whose size meets both
Address Change Service (ACS)                     Five commenters indicated their           the letter-size requirements and the
participating pieces’’ also applied to        support for allowing pieces in an            automation flats requirements to be
pieces that bear no endorsement. When         Enhanced Carrier Route rate mailing          prepared as flats on pallets if a portion
Periodicals pieces bear no endorsement,       and/or in an automation rate mailing         of the mailing qualifies for automation
after 60 days or, if the piece is             that have each separately met a 200-         flats and if palletized mail at the
undeliverable, a separate address             piece or 50-pound minimum quantity           Presorted Standard rates is limited to
correction or reason for nondelivery is       requirement to be counted toward the         10% of the total palletized mail. This
provided, the address correction fee is       minimum quantity requirement for a           rule further requires that mail unable to
charged (the automated fee if ACS             Presorted Standard (3⁄5 and basic rate)      be palletized either due to density or
service is used), and the piece is            mailing, provided that (1) the Enhanced      because it exceeded the 10% limit be
disposed of by the Postal Service. The        Carrier Route rate mailing and/or the        prepared as a separate letter-size
entire chart in DMM F010.5.2g is              automation mailing and the Presorted         mailing. This issue is not related to the
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                       37959

implementation rules for the Docket No.     Standard Mail (A) markings and               be used indefinitely. However, mailers
R97–1 rate case and will not be revised     endorsements). No additional markings        will be given two years to convert their
as a part of this rulemaking process.       or postage are to be added to these          regular rate Presorted, regular rate
However, this matter has been brought       pieces. First-Class Mail or Priority Mail    automation, and regular rate Enhanced
to the attention of the Presort             postage must be paid for these pieces        Carrier Route mailings to the new
Optimization working group of the           using the appropriate First-Class or         ‘‘Presorted Standard’’ marking or its
Mailers Technical Advisory Committee.       Priority Mail postage statement. Except      authorized abbreviation ‘‘PRSRT STD.’’
   One commenter indicated that on          for metered pieces weighing over 13          Until January 10, 2001, either the ‘‘Bulk
occasion he will have a mailing that is     ounces and less than 16 ounces, mail         Rate’’ or the ‘‘Presorted Standard’’
set up as Standard Mail (A) (i.e., bears    bearing metered or precanceled stamp         marking or authorized abbreviation will
Standard Mail (A) rate markings and         postage must pay the difference between      be accepted.
pre-printed endorsements for Change         the postage affixed and the First-Class         Five commenters requested that the
Service Requested using ACS) and            Mail or Priority Mail rates by means of      proposed ‘‘RSS’’ marking for pieces
subsequently discover that a particular     an advance deposit account or by             subject to the residual shape surcharge
mailing list has fewer than 200 names.      affixing a meter strip for the appropriate   be eliminated. Four of these
Such a mailing would not qualify for        amount to the First-Class postage            commenters indicated the marking uses
Standard Mail (A) rates, and would be       statement. If the pieces weigh 13 ounces     too much space on a mailpiece, one
subject to single-piece First-Class Mail    or less, mailers must use special line       indicated that it detracts visually from
rates, unless it could meet the revised     items on the new First-Class postage         the mailpiece, two did not see the
volume requirements under DMM               statements under the heading ‘‘From          purpose of it, and one indicated it
E620.1.2. This commenter indicated that     Standard Mail (A)’’ to record the pieces     would require additional labor for the
he could cover the bulk rate indicias       mailed. This option may be used for          shipper. One commenter was a mailer
with First-Class stamps, but that the       fewer than 200 pieces of permit imprint      association, who indicated it would be
ACS participant code on the mailpieces      mail only if the pieces were part of a       impossible for some of its mailers to
would be that assigned for Standard         larger mailing job and are submitted for     predict which pieces would need the
                                            acceptance along with the mail and a         marking. One such mailer has pieces
Mail (A), not First-Class. This
                                            Standard Mail (A) postage statement for      that could be considered either flat-size
commenter accordingly asked if changes
                                            the other pieces in the same mailing job.    or a machinable parcel and decides
could be made to the Centralized               One commenter was concerned that
Forwarding System (CFS) to handle this,                                                  which way to prepare the mail based on
                                            the revised definition of a mailing in       the density of orders received. Only
and if not, asked how could it be           DMM M011.1.4d(6) seemed to preclude
mailed. The CFS system cannot be                                                         machinable parcel mailings would need
                                            his company’s current practice of co-        to bear the marking. Another such
modified to handle such instances. It       mailing Nonprofit and Regular rate mail.
would be unlikely that a postal                                                          mailer indicated they cannot predict the
                                            This section has been renumbered as          final size of the product shipped ahead
employee would be able to tell that such    M011.1.4e(6) in this final rule. This
a mailpiece was modified from a                                                          of time. For example, multiple pieces
                                            section begins with the phrase ‘‘Except      ordered could be sent as one or more
Standard Mail (A) mailpiece if a stamp      as provided by standard,’’ which means
is covering the bulk rate indicia.                                                       pieces each having a different shape.
                                            that other rules in the DMM may permit       Based on the comments received, the
Furthermore, if mailers added ‘‘single-     practices that entail combining or
piece’’ or ‘‘single-piece First-Class’’                                                  Postal Service has determined to not
                                            copalletizing such pieces. For clarity the   require the use of an ‘‘RSS’’ marking.
markings to such mailpieces it would be     following sentence was added to this
difficult and time consuming to have        section in the final rule. ‘‘See M041.6.0,   6. Standard Mail (B)
carriers search all undeliverable           M045.5.0, M045.7.0, and M200.6.0 for
mailpieces for such markings in order to                                                 a. General
                                            copalletized, combined, or mixed-rate
forward them to CFS sites, and then for     level mailings.’’ Accordingly, if a mailer      There were 10 commenters among the
CFS employees to notice the markings        is currently authorized to combine or        32 submitting comments to the Postal
and respond accordingly. Two options        copalletize Nonprofit and Regular rate       Service whose statements concerned
have been added to the DMM for              mail, he or she may continue to do so        Standard Mail B topics. Of the 10, seven
payment at First-Class or Priority Mail     after the new rates and mailing              were private firms, including three
rates for such pieces and for pieces that   definitions are effective.                   parcel consolidators, and three were
for other reasons are subject to the           Two commenters supported the              parcel shipper associations. Their
appropriate First-Class Mail or Priority    change in the Standard Mail (A) rate         comments concentrated mainly on the
Mail rates. Mailers who desire to receive   marking for Regular rate mailings from       following subject areas: barcoded
First-Class Mail or Priority Mail service   ‘‘Bulk Rate’’ to ‘‘Presorted Standard.’’     discount, destination mailings at the
on mailpieces subject to those rates        Two commenters indicated that the            sectional center and delivery unit levels;
must re-envelope or otherwise prepare       ‘‘Presorted Standard’’ marking should        new bulk mail center presort (BMC
the mailpieces so that they bear only the   be optional. These two commenters            Presort) and origin bulk mail center
proper First-Class Mail or Priority Mail    indicated that they would prefer to use      presort (OBMC Presort) discounts; 10%
rate markings, ancillary service            the new marking on their advertising         limitation on oversized parcels; criteria
endorsements, Address Change Service        mail but do not wish to use it on            for machinability and nonmachinability;
(ACS) codes, etc. Metered pieces            fulfillment parcels because it will be       combined mailings of Standard Mail (A)
weighing over 13 ounces and less than       costly to revise the current cartons. One    and Standard Mail (B) parcels; and
16 ounces must always be prepared           of these commenters indicated that if        vehicle unloading requirements.
under this method. Except for metered       the marking is not made optional, there         In addition to receiving comments as
pieces weighing over 13 ounces and less     should be a transition period of at least    part of the formal rulemaking process,
than 16 ounces, mailers who do not          two years for mailers to convert to the      the Postal Service has had extensive
desire to receive First-Class Mail or       new marking. For simplicity in its           ongoing exchanges of viewpoints with
Priority Mail service on such pieces may    statistical sampling systems, the Postal     representatives of the parcel shipping
submit them ‘‘as is’’ (i.e., bearing the    Service will not allow both markings to      industry. This cooperative effort has led
37960           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

to the development of revised standards      Code appear as part of the barcode          average narrow element width is to
that the Postal Service believes strikes a   printing process immediately below the      ensure the reliable reading of barcodes
better balance between the interests of      barcode is useful in determining that the   on currently deployed postal
mailers and their concerns about             correct barcode was applied to the          equipment. The quiet zone specification
qualifying for the most advantageous         mailpiece, particularly if the barcode is   for the barcode symbologies in question
postage rate discounts at the lowest         applied in a process separate from          is defined in the AIM/USS symbol
possible mailing costs and the needs of      applying the address. Since generally       specification. Additionally,
the Postal Service for providing high-       the ZIP Code in the address block is        manufacturers of barcode readers advise
quality service, containing costs, and       used in the process of applying an          that a minimum clear zone of 10 times
optimizing operational efficiency.           address block barcode, the Postal           the average narrow element width
Significant revisions have been made in      Service has decided to revise the           enhances barcode readability.
the proposed standards, especially as        standard. Therefore, the numeric               This commenter also asked why the
                                                                                         1⁄8-inch dimension could not be used.
they relate to mail preparation              equivalent of the barcode will not be
requirements for the new destination         required to appear immediately below        The reason is that 1⁄8 inch is less than
sectional center and delivery unit           the barcode when the barcode is printed     10 times the average narrow element
discount rates.                              as part of the address block (on the same   width for the minimally defined narrow
   Several other issues unrelated to the     label as the mailing address and in close   element width of 13 mils, and,
R97–1 rate case emerged and are not          proximity to that address). However, if     therefore, not in compliance with the
addressed in the final standard. These       the barcode label is produced separately    AIM/USS symbology specification and
issues concern extension of the              from the address label, the human           the ANSI print code quality guidelines
destination bulk mail center rates           readable ZIP Code information must be       (ANSI X3.182–1990). Another question
(DBMC) to Alaska, Hawaii, and Puerto         included. This decision will give           from this same commenter concerned
Rico, new criteria for parcel                mailers some flexibility in how they        whether the proposed measurement
machinability or nonmachinability, and       prepare their address labels while still    would allow greater room for shifting of
updated definitions of ‘‘perishable’’ and    meeting postal concerns about having        the piece under the barcode reader on
‘‘nonperishable’’ parcels that take into     barcodes that are correct for the           the parcel sorter machines. The
account improved packaging and               addresses on the parcels.                   proposed clear zone specification is the
containerization. They will be reviewed         Another commenter raised several         minimum acceptable standard as
separately by the Postal Service in the      questions about the technical               provided in the ANSI print code quality
future and any changes to existing           specifications included in the proposed     guidelines of ANSI X3.182–1990.
standards will be handled through            rule. Clarification was requested for the
                                                                                         c. Oversized Parcels
separate rulemaking procedures.              average measured narrow element (bar
                                             or space) width. The average measured          The Postal Service had included in
b. Parcel Barcodes                                                                       the proposed rule provisions for mailing
                                             narrow element is the barcode X-
   Two commenters indicated that they        dimension that typifies the arithmetic      oversized parcels (parcels exceeding 108
would support a barcode certification        mean of the barcode narrow elements. A      inches but not more than 130 inches in
process, and that this process should be     minimum clear or quiet zone equal to 10     combined length and girth) at the rates
published at least 60 days prior to rate     times the average measured narrow           equal to a 70-pound parcel for the
availability. In lieu of a barcode           element (bar or space) width must be        applicable zone provided they
certification process, the Postal Service    maintained on either side of a barcode      constituted no more than 10% of the
is looking at methods to verify the          as defined in ANSI X3.182–1990.             total pieces in a mailing. Two
quality of barcodes during the                  A second question was whether            commenters questioned the 10% limit.
verification process using commercially      mailers and their suppliers would have      The PRC’s recommended decision
available barcode verification               to start measuring barcode spaces and       included zoned rates for such oversized
equipment.                                   bar widths more scientifically to           pieces that are higher than the 70-pound
   One commenter indicated that the          determine what dimension is                 rates. The PRC did not recommend a
barcoded discount should be available        appropriate for the clear space             10% limit on such pieces but
for pieces processed at any postal           surrounding parcel barcodes on either       recommended higher rates. Since the
facility that is automated to use the ZIP    side. The Postal Service is confident       Governors of the Postal Service
Code barcode for sorting, including          that mailers will be able to determine      approved this provision of the PRC’s
ASFs that now or in the future have          the average narrow element widths and       recommended decision, the final DMM
barcode scanning capabilities. The           barcode quality by using commercially       standards do not include a 10% limit on
Postal Service has determined that the       available barcode verification              such oversized pieces.
Phoenix, Arizona, ASF has barcode            equipment.
scanning capabilities. Accordingly, the         A related question had to do with        d. DSCF Rate Mailings
Postal Service has revised the standards     how the Postal Service would                  Nine of the 10 Standard Mail (B)
for eligibility for the barcoded discount    administer this specification. The Postal   commenters had comments about the
for Parcel Post mail to include              Service is looking at methods to verify     proposed standards for destination
machinable parcels eligible for the          the quality of barcodes during              sectional center facility (DSCF) and
DBMC rate that are entered at the            verification by using commercially          delivery unit (DDU) rate mailings. Three
Phoenix ASF.                                 available barcode verifiers to measure      parcel consolidation shipping
   One commenter raised a question           barcode parameters.                         companies submitted comments
about the need for having human-                Another question concerned the basis     favoring more flexible, less restrictive
readable characters representing the 5-      for requiring a minimum clear zone          requirements. In general, the comments
digit barcode appear on a mailpiece’s        equal to 10 times the average measured      favored lower minimum volumes for
address label since it duplicates            narrow element (bar or space) width on      rate eligibility than those proposed by
information already provided in the          either side of the barcode. The             the Postal Service, optional entry points,
address and takes up limited label           advantage to the Postal Service for using   and greater flexibility in the preparation
space. Having the human-readable ZIP         a minimum clear zone of 10 times the        requirements so mailers could choose to
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                         37961

prepare pieces directly on pallets, in       of pieces per handling resulting in           facility would be less than from the
pallet boxes on pallets, or in sacks.        higher costs, would adversely affect the      BMC. The Postal Service disagrees.
   One commenter proposed that the           viability of the rate. Small volume           BMCs do not currently sort sacks to 5-
Postal Service eliminate the use of sacks    pallets would increase handling costs         digits or cross-dock 5-digit sacks. They
for the DSCF rate. This commenter            and also would take more cube space on        are shipped to the SCF in 3-digit
believed that eliminating sacks as an        transportation. While suggesting              containers and are re-worked to 5-digits
option would avoid additional                differing alternatives to the Postal          at the SCF, thus adding handlings.
handlings of sacks at postal facilities.     Service proposal, these five commenters       Further, granting an option on a blanket
This commenter also indicated that very      were in agreement that the requirement        basis is likely to worsen the problems
few parcel mailers would be able to          of a minimum of 50 pieces and 250             experienced by some sectional center
place 10 parcels in a single sack and        pounds per pallet was too high. To            facilities in accommodating palletized
that this minimum could effectively          resolve their concerns and those of the       mailings due to limited dock space,
eliminate sacked mail. Five other            Postal Service about piece handling and       restricted vehicle maneuvering area, and
commenters also thought the proposed         transportation costs, the Postal Service      other constraints. Recognizing that
sack minimum of 10 pieces was too high       has added a new option for preparing 5-       requiring BMC entry may present
and said it would discourage DSCF            digit pallets to qualify for the DSCF rate.   certain difficulties for mailers, the
mailings. While several commenters           Under the new option, pallets may be          Postal Service has amended the
proposed adopting minimums that              prepared that contain as few as 35            proposed standard to allow exceptions
would utilize sack volume and weight         pieces and 200 pounds of mail provided        on a case by case basis. A mailer may
factors, these factors are not included as   the total number of pallets prepared for      submit a written request to the
part of the costing determinations for       the DSCF rate in the mailing average at       appropriate Area Manager, Operation
the rate. The critical cost determinant      least 50 pieces per pallet. Under this        Support asking for an exception to
for the rate is the number of pieces per     new option, no other pallet preparation       Exhibit E652.5.0. The exception request
handling. In the final DMM standards         or sack option may be used within a           must be submitted at least 15 days prior
the minimum number of pieces per sack        single mailing. Mailers will be required      to the mailing and may be granted only
has been reduced from 10 to seven. The       to submit detailed documentation and          for a limited time.
decision to reduce the minimum to            place sequential identification numbers          The proposed standard specified that
seven pieces is being made with the          on qualifying pallets of DSCF rate mail.      palletized DSCF rate mailings must be
expectation that an average of 10 pieces     The documentation must list each pallet       entered at the appropriate BMC listed in
per sack will be achieved to support the     in sequential order by pallet                 Exhibit E652.5.0. and sacked mailings
worksharing discount. In addition, the       identification number. The listing must       must be entered at an SCF. Two
final DMM standards allow for one            show for each pallet: the pallet              commenters objected to these
overflow sack per 5-digit destination        identification number, the 5-digit ZIP        requirements. Since the requirement is
that may contain fewer than seven            Code of the pallet, the total weight of       consistent with the costing and
pieces.                                      pieces on the pallet, the total number of     worksharing assumptions that underlie
   Six commenters sought to eliminate                                                      the rate, it has been left unchanged. The
                                             pieces on the pallet, and the cumulative
the provision prohibiting overflow                                                         rate assumes no handling of sacks at
                                             total of pieces (i.e., the number equal to
pallets. One commenter said that since                                                     BMCs. Some mailers who were claiming
                                             the number of pieces for that pallet plus
overflow trays of letters are permitted,                                                   the DBMC rate will benefit because now
                                             the sum of the pieces on all pallets
overflow pallets of parcels also should                                                    they can get a DSCF rate when dropping
                                             listed above it). This documentation
be allowed. This argument is not                                                           at a BMC.
                                             must not include pieces prepared in
persuasive because the cost of handling                                                       A parcel consolidator also stated that
a pallet is much greater than the cost of    overflow sacks at the DSCF rate, pieces       the DSCF rate should be allowed for
handling a tray. It costs as much to         prepared on overflow pallets at the           mail prepared on pallets for 5-digit
handle a less-than-full pallet as it does    DBMC rates, or pieces claimed at any          facilities that are not capable of
a full one. However, the standard has        other rate in the mailing.                    handling pallets according to the Drop
been modified in this final rule to             The requirement for BMC entry of           Shipment Product. The requirements as
accommodate overflow from pallets.           DSCF rate mailings prepared on pallets        written allow the Postal Service to
Provisions have been added to the DMM        to ZIP Codes listed in Exhibit E652.5.0       recoup the cost savings passed on to the
standards that allow overflow from 5-        has been retained. The BMC provides           mailer in the lower DSCF rate. These
digit pallets to be placed in 5-digit        direct transportation to the 5-digit          cost savings will not be realized if the
sacks. Overflow sacks will have no           facilities represented by the listed 5-       SCF facility receives a 5-digit pallet for
minimum piece requirement and the            digit ZIP Codes, thereby allowing             a 5-digit facility that cannot handle
pieces in overflow sacks will be eligible    certain quantities of mail to bypass the      pallets. The SCF would need to
for the DSCF rates. The Postal Service       affected SCFs. The Postal Service             manually unload the parcels off of the
also has added provisions that will          believes that there is a need for             mailer-prepared 5-digit pallet and place
allow a mailer to present to a DSCF          palletized mail for the 5-digit ZIP Codes     them into another type of 5-digit
overflow 5-digit pallets (that by            listed on Exhibit E652.5.0 to continue to     container before the SCF could transport
definition do not meet the pallet            bypass the affected SCFs because of the       the parcels to that 5-digit facility.
minimums for the DSCF rate) provided         potentially limited capabilities of those     Accordingly, the DMM standards will
the DBMC rates are paid for the pieces       SCF facilities. Three commenters said         not be revised to allow the DSCF rate for
on such overflow pallets.                    that they would like to have an option        mail prepared on pallets for 5-digit
   Five commenters expressed concern         to enter DSCF rate mailings either at a       facilities that are not capable of
over the 5-digit pallet minimums             BMC or an SCF. To support this                handling pallets.
specified in the proposed rule. In setting   position, one commenter contended that           Six commenters requested
the minimum specified in the proposed        the same dock procedures for handling         reconsideration of the prohibition
rule, the Postal Service was guided by       5-digit containers are followed at the        against use of pallet boxes on pallets.
per-piece handling costs and concerns        SCF as are followed at the BMC and that       After further evaluation, the Postal
that a reduction in the average number       the distance from the SCF to a 5-digit        Service decided to allow the use of
37962           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

mailer-supplied pallet boxes that                Another commenter wanted to              additional documentation will be
measure up to a maximum of 60 inches          bedload parcels entered at DDUs.            necessary for mail entered at the BMC
in height, except in the case of facilities   Mailings may be bedloaded, placed           Presort or OBMC Presort discounts and
unable to handle pallets. There is no         directly on pallets, or placed in pallet    has removed the documentation
minimum height requirement for the            boxes on pallets, if the facility can       requirement from the DMM standards in
pallet box as long as the appropriate         handle them. Since the DDU rate is          this final rule.
piece and pound minimum requirement           based on worksharing factors that do not       One commenter requested that the
or the 36-inches of mail minimum              include unloading by Postal Service         proposed standards for BMC Presort and
requirement are met for each pallet. One      employees, the requirement for vehicle      OBMC Presort discounts be changed to
commenter also asked to be allowed to         drivers to unload all DDU rate mailings     allow overflow containers if the
double-stack pallet boxes on pallets.         is retained.                                container was at least 50% full. The rate
The proposed standard has been revised                                                    is based on piece handling efficiencies
                                              f. OBMC Presort and BMC Presort Rate        that are not realized when the
to permit double stacking. Just as pallets    Mailings
are not allowed at the DSCF rate for                                                      containers do not meet the required
those 5-digit destinations listed in the         Three commenters questioned why it       minimum volumes. Therefore the
Drop Shipment Product as unable to            is required that machinable parcels be      prohibition on overflow containers has
handle pallets, pallet boxes on pallets       placed in pallet boxes on pallets and       been retained.
will not be allowed for those same            why they could not be placed directly
                                              on pallets. In addition, three              g. Bedloading
offices.
                                              commenters wanted to use pallet boxes          A requirement was included in
e. DDU Rate Mailings                          for both machinable parcels and             proposed standard DMM E652.2.1 that
                                              nonmachinable parcels. The proposed         perishable and nonperishable items in a
   The proposed standard did not allow
                                              standard has been left unchanged. The       bedloaded DBMC or bedloaded DDU
the use of pallet boxes for DDU rate
                                              cost savings underlying the discount for    rate mailing would have to be separated.
mailings. Four commenters felt that
                                              machinable parcels assumes that             Fruit shippers in particular expressed
pallet boxes should be allowed. The
                                              machinable parcels are placed in pallet     opposition to this on grounds that the
Postal Service agrees that they may be
                                              boxes that can be dumped by tipping         current method of preparing mailings
used and that mailers will need to
                                              the box onto the parcel sorting             without separation was satisfactory and
supply them. If a mailer chooses to do
                                              equipment instead of having to              that the new requirement would only
so, they may be double-stacked. As with
                                              manually unload individual pieces from      add to their mail preparation costs. The
DDU mailings that are bedloaded or
                                              a pallet. A pallet box is placed at an      Postal Service has removed the
sacked or prepared as parcels placed
                                              incoming door of a BMC where there is       requirement from the final standard
directly on pallets, the vehicle driver is
                                              a dumping operation. Nonmachinable          after further consideration of the need
required to unload the pallet boxes and
                                              parcels must be placed directly on          for separation.
place them at a designated location at                                                       Two commenters also requested to be
                                              pallets because they are worked at
the delivery unit. If they are double-                                                    allowed to bedload DSCF rate mailings
                                              separate locations within a BMC. They
stacked, the driver must remove them                                                      as is allowed for DBMC and DDU rate
                                              are not dumped onto a parcel sorting
from the vehicle, unstack them, and                                                       mailings. The original provision
                                              machine since they are not machinable.
then remove any strapping material. At        These nonmachinable pieces are sorted       limiting bedloading to DBMC rate mail
DDU facilities listed in the Drop             manually. It is safer and more efficient    entered at BMCs and ASFs and to DDU
Shipment Product as being unable to           to manually remove such pieces from         rate mail entered at delivery units has
handle pallets, mail that has been            pallets when they are placed directly on    been retained in the final standard. This
placed directly on pallets or in pallet       the pallet rather than in a pallet box.     is because the DSCF rate is based upon
boxes on pallets must be off-loaded by           One commenter indicated that the         receiving 5-digit containers of parcels
the vehicle driver from the pallet or         proposed documentation for the BMC          that can be cross-docked to the 5-digit
pallet box into other containers              Presort and OBMC Presort discounts          delivery unit.
specified by the delivery unit.               that requires a listing of the number of
   Two commenters stated that Standard        pieces on each individual BMC pallet        h. Destinating Facility Appointments
Mail (A) pieces should be counted             was too onerous. The commenter              and Vehicle Unloading
towards the minimum volume required           suggested that a listing by BMC               The standard requiring the mailers’
for the DDU rate. However, eligibility        destination should satisfy the needs of     drivers to unload destination delivery
for the DDU rate category, as with each       the Postal Service. The Postal Service      unit mailings was the principal area
of the other destination rate categories      has reconsidered its documentation          drawing opposing comments. Six
for Parcel Post, has a fixed minimum          needs for verification purposes. Metered    commenters objected to the driver
volume requirement of 50 pieces of            mail is required to bear the exact          unloading requirement for the DDU rate.
Parcel Post mail. This requirement is in      postage on each piece and, therefore        A parcel shippers association and a
the Domestic Mail Classification              documentation is not needed to verify       company commenter took the position
Schedule (DMCS) and cannot be                 postage. Permit imprint mail must be        that unloading by drivers should be
unilaterally modified by the Postal           prepared so that all the mail in a single   limited to bedloaded shipments only.
Service.                                      container is of the same weight and rate    The same two commenters said that
   One commenter asked whether a              of postage unless the mail is prepared      postal employees should unload pallets
separation would be required beyond a         under a manifest mailing system or          of Standard Mail (B) parcels just as they
5-digit destination to be eligible for the    another system of documentation or          do [Standard Mail (A)] flat mail. The
DDU rate. The Postal Service requires a       records that permits the Postal Service     current standards for the Standard Mail
5-digit separation only. However, if          to adequately verify postage. The           (A) DDU rates do however, require that
more than one 5-digit ZIP Code is             manifest system will require mailers to     vehicle drivers must unload DDU rate
served by a delivery unit, the mailer         list pieces for these rates by BMC          mailings. The comments of the parcel
must separate the pieces by 5-digit ZIP       destination. Accordingly, the Postal        shippers association included a
Code when entered at the DDU.                 Service does not believe that any           suggestion that assistance by postal
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                            37963

employees should be provided                 Headquarters level. Under existing             parcels prepared for DDU entry because
whenever possible. One commenter             procedures two appeal levels, local            the preparation requirements are
questioned the unloading requirement         facility manager and district manager,         identical. The Postal Service disagrees
on the basis that the Postal Service was     customer service, are already available        with this statement. To qualify for
unlikely to make forklifts available to      to mailers. While the Postal Service is        Standard Mail (A) DDU rates, pieces
drivers and another raised the               willing to consider possible future            must be sorted to carrier route. Except
possibility that having drivers unload       changes, no changes are made at this           for merchandise samples prepared with
mailings might violate a postal labor        time.                                          detached address labels, the maximum
agreement.                                                                                  size of Enhanced Carrier Route mail is
   Since the worksharing DDU rate            i. Markings
                                                                                            113⁄4 inches high by 14 inches long, by
assumes that postal employees will not          Two commenters supported the                3⁄4 of an inch thick (which is flat-sized
unload shipments from vehicles, it was       proposed use of a single drop shipment         mail). Because of the maximum size
necessary for the Postal Service to retain   marking for DBMC, DSCF, and DDU                dimensions and the requirement to
the proposed standard without                Parcel Post rate mail. One commenter           walk-sequence or LOT-sequence
amendment. However, to facilitate the        disagreed with the requirement for any         Enhanced Carrier Route mail, the only
scheduling of drop shipments to              drop shipment markings. Drop                   parcels that can qualify for Enhanced
delivery units, a provision has been         shipment markings are needed to                Carrier Route rates are merchandise
made to allow standing appointments if       develop meaningful statistical samples         samples prepared with detached
shipment frequency is weekly or more         for the in-office costing system. Costs        address labels. The separate preparation
often. Another change was made with          developed from this system are used in         requirements for merchandise samples
respect to the proposed standard             rate cases. Although individual rate           with detached address labels prepared
covering deposit conditions (E652.3.7)       markings for each of the drop shipment         to qualify for the Enhanced Carrier
that stated mailings arriving more than      rates would result in more accurate            Route rates does not lend itself to
1 hour late for scheduled appointments       costing, the Postal Service has                combined preparation with Standard
at delivery units may be refused. This 1-    determined, based on mailer input, to          Mail (B) parcels. Accordingly, Standard
hour allowance was incorrect. The            require only a single drop shipment            Mail (A) and Standard Mail (B) parcels
proposed standard should have                marking for use on DBMC, DSCF and              will not be permitted to be combined
indicated 20 minutes to be consistent        DDU Parcel Post rate mail. An exception        when qualifying for their separate DDU
with current deposit conditions at           will be that the current ‘‘DBMC Parcel         rates.
delivery units for Standard Mail (A)         Post’’ or ‘‘DBMC PP’’ marking will                One commenter requested that the
mailings. Accordingly, the standard has      continue to be permitted on DBMC rate          requirement for minimum volumes to be
been modified to specify 20 minutes.         mail instead of the new ‘‘Parcel Post’’        met by Standard Mail (B) alone should
   Several comments were received            and ‘‘Drop Ship’’ markings until January       be removed since the incentive for
about destination entry shipments that       10, 2000.                                      combining classes is to use the
generally requested an easing of existing       One commenter indicated that the            combined volume to meet the pallet and
provisions. For example, one                 ‘‘Presorted Standard’’ marking should          sacking minimums. Meeting the pallet
commenter wanted to see the                  be extended to Standard Mail (B). This         and sack minimums based on Standard
requirement for the time allowed for         commenter stated that many mailers             Mail (B) alone is required only when the
driver unloading of destination entry        now use the ‘‘Bulk Rate’’ indicia for          Standard Mail (B) preparation method
shipments to BMCs, ASFs, and SCFs            both Standard Mail (A) and bulk Bound          requires a minimum number of pieces
increased from 8 to 12 hours. Another        Printed Matter mailings by simply              (e.g., it is not required when the DSCF
company submitting comments                  adding the ‘‘Bound Printed Matter’’            minimum of 36 inches of mail on a 5-
disagreed with the existing 2-hour grace     marking directly to the left of the ‘‘Bulk     digit pallet is used). The Postal Service
period allowed for scheduled                 Rate’’ indicia. The Postal Service has         wants to ensure that it is moving a
appointments at BMCs, requesting that        amended this final rule to allow use of        substantial volume of mail on a single
the time allowance be doubled or even        the ‘‘Presorted Standard’’ marking in          5-digit pallet. If mailers fill a pallet with
expanded to 8 hours during the peak fall     lieu of the ‘‘Presorted’’ marking for          36 inches of predominately Standard
mailing season. Such liberalization of       presorted Bound Printed Matter.                Mail (A) mail, it would take a large
existing standards would adversely              One commenter asked what will
                                                                                            number of Standard Mail (A) pieces to
impact the window needed by the              happen to an individual customer’s mail
Postal Service to handle mailings and                                                       do so. By the same token, placing
                                             if it does not bear the ‘‘Parcel Post’’
will not be adopted.                                                                        predominately Standard Mail (A)
                                             marking. If this mail is entered at a retail
   Another commenter wanted the Postal                                                      parcels on a pallet based on a 50-piece
                                             window, the retail clerk will add the
Service to allow a drop and pick option                                                     minimum criteria could result in a very
                                             marking to the mailpiece. If this mail is
for palletized loads at BMCs. Again, the                                                    small pallet. Therefore the Postal
                                             entered at an acceptance unit, the
impact on postal operations of such a                                                       Service is retaining the rules as
                                             appropriate verification and acceptance
change would be negative, as, for                                                           proposed.
                                             processes will be performed to ensure
example, postal employees would then         that the mail is entered with proper           7. Special Services
have to shuttle trailers back and forth      markings. Since matter weighing over
from staging areas to facility docks and                                                    a. Business Reply Mail
                                             16 ounces is not permitted to be placed
back. Accordingly, this comment will         in collection boxes, there is little              Eleven comments were received
not be adopted.                              likelihood that mail without the ‘‘Parcel      concerning the proposal to increase the
   Two commenters maintained that the        Post’’ marking will be entered in the          minimum thickness of BRM pieces from
Postal Service should reimburse mailers      mailstream.                                    0.007 inch to 0.009 inch thick for those
for waiting time charges, demurrage, or                                                     pieces that bear a barcode and measure
other detention costs when the cause is      j. Combined Parcels                            greater than 41⁄4 by 6 inches. Nine
clearly attributable to the Postal Service      One commenter stated that Standard          commenters stated that 0.009 inch thick
or, alternatively, that there should be an   Mail (A) parcels should be permitted to        paper stock is more expensive than
expanded appeal process to the national      be combined with Standard Mail (B)             0.007 inch thick paper stock. Six
37964           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

commenters indicated that the increased       that otherwise bear a barcode will be         and to procure new stock that meets the
weight of the stock would increase            sufficiently sturdy to be successfully        DMM C840 requirements.
shipping and trucking costs of the paper      transported through postal automation            One comment was received
stock and increase pound-rate postage         equipment and will minimize the               questioning why proposed S922.6.8c(4)
on the outgoing mailpiece (publication)       potential for damaged pieces. The Postal      prohibits the use of business reply
that the BRM piece is inserted into. Four     Service implemented this minimum              labels on letter-size envelopes with a
commenters suggested that mailers will        thickness requirement for automation          height more than 41⁄2 inches. This is not
cease using the cards and use some            rate mailings on February 24, 1991,           a change. The same standard appears
other medium than the mail to increase        based on these studies and on mailer          today in S922.6.10c(4). This standard
their circulation and market their            complaints concerning damaged pieces.         will be maintained in order to assure the
products. One commenter stated that           Although at that time these minimum           readability of the address on the letter-
this change is not directly related to rate   thickness requirements were not               size piece. If labels were permitted on
and fee increases in Docket No. R97–1.        applied to BRMAS or other barcoded            letter-size pieces up to the maximum
One commenter suggested the Postal            BRM pieces, the Postal Service believed       height of 61⁄8 inches, the address on the
Service develop a new maximum size            then and believes today that the 0.009        label would not be placed within the
limit that could be used with 0.007 inch      inch minimum thickness requirement            optical character read (OCR) area of the
thick paper stock, such as 5 inches by        for pieces measuring over 41⁄4 by 6           mailpiece.
7 inches. Four commenters stated that         inches is necessary for efficient                One comment was received regarding
the Postal Service should study the           processing on automation equipment. In        the format error notification process
impact on mailers and the Postal              view of the discounted First-Class            described in proposed DMM S922.5.3.
Service before adopting this                  postage rate applied to QBRM postage          The commenter stated that although
requirement. Three commenters                 that is based primarily on the savings        mailers are willing to correct errors
indicated that no compelling rationale        for automated processing, the Postal          immediately, they need a grace period
for this change was provided in the           Service feels it is appropriate to apply      in which pieces already distributed will
proposal, such as the existence of            the same standards to this mail as it         be returned. The cited DMM section
machinability problems. Nine                  does to other mail entered at automation      only requires that all future BRM pieces
commenters indicated that there is            rates. The Postal Service understands         distributed by any means must meet the
currently only a limited supply of 0.009      that mailers may need time to deplete         BRM format standards. This commenter
inch card stock. Two commenters               existing stock of BRM mailpieces and to       also indicated that the requirement for
indicated that mailers would need a           develop suppliers of thicker paper            mailers who have had their BRM permit
grace period before this requirement          stock. Therefore, the effective date of the   revoked for repeatedly distributing BRM
went into effect so that their printers       0.009 inch minimum thickness                  mail that does not meet the format
could develop new paper supplies. One                                                       requirements to submit 2 samples of
                                              requirement for barcoded BRM pieces
commenter indicated that Postal Service                                                     each BRM format for approval for a two-
                                              measuring over 41⁄4 by 6 inches will be
testimony in R97–1 indicated that only                                                      year period after completing a new BRM
                                              January 10, 2001. This gives mailers 2–
a small proportion of BRM is processed        1⁄2 years notice to comply with this          application is overly punitive. The
through BRMAS or through barcode                                                            commenter stated publishers receive
                                              change.
sorters and that the additional expense                                                     inserts too close to printing dates to
of thicker paper stock is not warranted          Only one comment was received              allow time for the Postal Service to
if the pieces are not likely to be handled    regarding barcode placement. This             review the format. The commenter
in an automated fashion.                      commenter indicated that the proposed         should note that this provision is not a
   A low incidence of processing mail on      change to DMM S922.5.1 was confusing.         change. The same standard appears
barcode sorters is true only for the          This commenter assumed that the Postal        today in S922.5.7 and has been in place
accounting activities related to BRM.         Service was not seeking to further            for several years. The Postal Service
However, the lower First-Class postage        restrict placement of barcodes on letter-     feels that no change in policy is
rate for QBRM is based on lower costs         size BRM and asked why the one-year           warranted at this time. This provision
due to processing pieces on barcode           grace period for compliance was               only applies to permit holders whose
sorters in non-accounting operations (i.      needed. The proposed change was to            permit was previously revoked for
e. in processing the mail from the            make the placement of lower right             repeated format violations and should
collection box to the facility where the      barcodes for BRM comply with C840.            not affect the vast majority of mailers.
accounting procedures are performed).         Currently, pieces of BRM prebarcode in
                                              the lower right corner may: (1) have a        b. Insurance
   The Postal Service has adopted the
minimum thickness requirement of              barcode clear zone with a left boundary          One commenter requested
0.009 inch for pieces measuring over          that is 41⁄2 inches from the right edge of    clarification of DMM S913.12b. He
41⁄4 in height and/or 6 inches in length      the piece (not 43⁄4 inches as required in     indicated it is not clear what level of
as proposed. This requirement is based        C840); (2) have a lower right barcode for     service would be provided to an item
on engineering studies. These studies         which the leftmost bar is located             mailed under this DMM section. This
have shown that mailable pieces not           between 31⁄4 and 4 inches from the right      section in essence states that matter
larger than 41⁄4 by 6 inches with a           edge of the piece (not between 31⁄2 and       mailed at First-Class Mail or Priority
minimum thickness of 0.007 inch and           41⁄4 inches as required under C840); (3)      Mail rates may be insured only if it
meeting specified basis weight                have a lower right barcode window, that       consists of matter that could also be
requirements can be successfully              has a left boundary measuring 41⁄2            mailed at Standard Mail rates (that is, it
processed on automation equipment,            inches from the right edge of the piece       is not any of the types of items required
while pieces larger than 41⁄4 by 6 inches     (not 43⁄4 inches as required under C840).     to be mailed at First-Class rates under
generally must be 0.009 inch thick to be      The final standards in DMM S922.5.1           DMM E110). The level of service
successfully processed on automation          have been revised to clarify this matter.     provided for these items will be First-
equipment. Adoption of this rule will         Mailers will be given until January 10,       Class or Priority Mail service according
ensure that business reply pieces             2001, to use existing stocks of such          to the weight of the item and the rate of
entered at the automation QBRM rate or        prebarcoded BRM envelopes and cards           postage paid.
                 Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                         37965

c. Return Receipt Service                      these services with Standard Mail (A)        D   Deposit, Collection, and Delivery
   Three commenters had concerns over          would in many instances require a               D010.1.1 is amended to delete the
the Postal Service’s proposal to modify        classification case to be filed with the     term ‘‘single-piece.’’ D010.1.2 is
DMM D042.1.7a and b. The proposed              PRC. Therefore, such changes will not        amended to exclude Parcel Post pieces
revisions stipulated that organizations        be implemented with these R97–1              mailed at the DDU and DSCF rates (as
receiving large volumes of pieces              implementation rules. However, the           well as mail at DBMC rates), or claiming
bearing return receipts would only need        Postal Service may consider offering         the OBMC Presort discount, from
to sign a manifest listing all of the          some of these services with Standard         obtaining pickup service. D600.2 is
accountable mail before the mail was           Mail (A) at a future date.                   amended to remove the sentence that
delivered to the organization. The                                                          allowed single-piece Standard Mail (A)
                                               D. Summary of Domestic Mail Manual
current DMM rules stipulate that the                                                        bearing adhesive stamps to be placed in
                                               (DMM) Changes
recipient sign the delivery receipt and                                                     collection boxes.
the return receipt and hand the receipts         The following are changes organized        E   Eligibility
over to the Postal Service before the          by DMM module. They are intended as
mailpieces can be opened, or given to          an overview only and should not be              E060.5 is amended to reflect the new
the recipient. These commenters were                                                        13-ounce weight limit for First-Class
                                               viewed by readers as defining every
concerned that allowing customers to                                                        Mail. E060.12 is amended to remove
                                               revision.
complete return receipts without Postal                                                     single-piece Standard Mail (A) as a
Service controls is inappropriate and          A   Addressing                               permissible rate for the return of items
does not guarantee the customer that the                                                    under penalty merchandise return
return receipt he or she has paid for will       A060.5.3 is amended to eliminate the       service. E110.4 is revised to delete
be returned or will be completed               option to pay postage for excess or          references to Presorted Priority Mail.
properly. The Postal Service proposed          undeliverable detached address labels        E120 is revised to remove references to
this revision to reflect the operational       (DALs) or items being returned at the        Presorted Priority Mail, to add
conditions in plants that employ               single-piece Standard Mail (A) rates.        information on rates and fees applicable
automated delivery receipt systems for         Postage for excess or undeliverable          to keys and identification devices, and
processing accountable mail. However,          DALs or items being returned is              to make minor organizational changes.
based on the mailer comments received,         computed at the applicable single-piece      E130 is revised for clarity and to add
the Postal Service determined not to           rate (First-Class Mail, Priority Mail, or    information on rates and fees applicable
revise DMM D042.1.7a and b. The Postal         Standard Mail (B)) for the combined          to keys and identification devices. E150
Service will work with its customers           weight of the DAL and the                    is added to provide information on
that receive large volumes of return           accompanying item, regardless of             qualified business reply mail. E200.14 is
receipts to ensure that our customers get      whether both are being returned.             amended to reflect the elimination of
the recipient’s signature, date of                                                          single-piece Standard Mail (A) rates.
                                               C   Characteristics and Content              E230.1, and E230.3 through E230.5 is
delivery, and address, if different, under
the standards in the current DMM.                 References to single-piece Standard       revised to provide for separate 5-digit
                                               Mail (A) are deleted throughout. C050 is     and 3-digit rates for Regular, Nonprofit,
e. Requests for Use of Various Special                                                      Classroom, and In-County subclasses,
Services With Standard Mail (A)                revised to add ‘‘Nonmachinable’’ to the
                                               title of 5.0 and 6.0 (Irregular and          and to show that the applicable 3-digit
   Two commenters recommended that                                                          rates will apply to both unique and
                                               Outside Parcels). C100.4.0 is revised to
DMM E612.4.10 be revised to allow                                                           nonunique 3-digit ZIP Code areas.
                                               include keys and identification devices
COD, insurance, and registry service                                                        E230.6 is revised to allow In-County
                                               as items that may be considered
with Presorted Standard Mail (A).                                                           mail to qualify for high density carrier
                                               nonstandard mail. C600.1.2 is amended
Another commenter indicated that                                                            walk-sequence rates based on either a
                                               to allow Parcel Post mailings to include
certified, COD, insurance, registered,                                                      minimum of 125 pieces per route or
return receipt, return receipt for             pieces measuring over 108 inches, but        25% of the total active possible
merchandise, special handling, and             not over 130 inches, in combined length      deliveries on the carrier route. E230.7 is
delivery confirmation services should          and girth, if the oversized Parcel Post      amended to require documentation for
be available for Standard Mail (A) since       rate is paid. C600.1.2 also is amended to    pieces and copies mailed to all 3-digit
these services are available today for         require Parcel Post pieces that weigh        destinations, (not only unique 3-digit
merchandise and providing these                less than 15 pounds but measure more         destinations). E240.2 is amended to is
services would generate revenue. DMM           than 84 inches in combined length and        revised to provide for separate 5-digit
E612.4.10 contains the information in          girth to pay a rate equal to that of a 15-   and 3-digit rates for Regular, Nonprofit,
current DMM E612.4.1. This section             pound parcel for the zone to which the       Classroom, and In-County subclasses,
states that bulk rate Standard Mail (A)        parcel is addressed. C600.2 is amended       and to show that the applicable 3-digit
may not use certified, collect on              to delete the nonstandard surcharge          rates will apply to both unique and
delivery, insurance, registry, return          criteria that formerly applied to single-    nonunique 3-digit ZIP Code areas. E600
receipt for merchandise, and special           piece Standard Mail (A). C810.2 is           is revised throughout to delete
handling services. The proposed DMM            amended to provide new maximum               references to single-piece Standard Mail
language simply moved this information         weights for automation ‘‘heavy’’ letters.    (A) and to change the name
into a separate section so that it is easier   C820.2 is amended to increase the            ‘‘nonautomation presort’’ to ‘‘Presorted’’
to find. Although a few of the above           maximum weight limit for First-Class         or ‘‘Presorted Standard.’’ E612 is revised
services were previously available for         automation rate flats to 13 ounces.          to change the weight breakpoints for the
Standard Mail (A) matter mailed at the         C840.8 is amended to add a stipulation       Standard Mail (A) minimum per-piece
single-piece rates, the elimination of the     for ZIP+4 barcodes for QBRM and other        rates, require Standard Mail (A) mailed
single-piece Standard Mail (A) rates           barcoded BRM. A new C850 is added to         at a Standard Mail (B) rate to show the
now excludes any Standard Mail (A)             provide standards for barcodes on            applicable Standard Mail (B) marking,
from receiving these services. Offering        parcels.                                     and to move restrictions on use of
37966           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

special services from E612.4.1 to new       name ‘‘bulk Bound Printed Matter’’ to         marking for Bound Printed Matter, and
section E612.4.10. E620 and E630 are        ‘‘presorted Bound Printed Matter.’’           adding the abbreviation ‘‘PRSRT’’ for
reorganized so that E620 contains           M033.1 is revised to reflect the new 13-      ‘‘Presorted’’ in the ‘‘Presorted Special
standards for Standard Mail (A) and         ounce weight limit for First-Class Mail.      Standard’’ marking. M810 is reorganized
E630 contains standards for Standard        M041 is revised to reflect requirements       and revised for clarity and to add new
Mail (B). E620 is revised to add new        for new Standard Mail (B) rates (OBMC         rate categories for Periodicals and to
minimum volume requirements for             Presort, BMC presort, DSCF, DDU).             make the 5-digit/scheme sortation level
Presorted Standard mailings, to add         M045 is revised to add preparation            optional for Periodicals automation
provisions for mailing certain matter not   requirements for new Standard Mail (B)        letters. M820 is revised to make the SCF
eligible for Standard Mail (A) rates that   rates (OBMC Presort, BMC presort,             sack a required level of presort for
bears Standard Mail (A) markings at the     DSCF, DDU). M050.4 is amended to              Periodicals automation flats, to delete
single-piece First-Class or Priority Mail   reflect revised placement of sequencing       the provisions for an optional origin/
rates, and to add provisions for the new    date information on mailing statements        required entry 3-digit sack, and to add
residual shape surcharge. E630 is           and to add documentation requirements         provisions for an optional origin/
revised to add provisions for new DSCF      for the Periodicals In-County rate mail       required entry SCF sack.
and DDU rates and new OBMC Presort,         that qualifies for high density rates         P Postage and Payment Methods
BMC Presort discounts, the oversized        under the new 25% of the total active
parcel provisions, and balloon rate                                                          P011 is revised to delete references to
                                            possible deliveries per carrier route
provisions. E630 is revised to add                                                        single-piece Standard Mail (A). P012
                                            criteria. M072.1.1 is amended for
provisions for a barcoded discount for                                                    revises standardized documentation for
                                            clarity. M072.2.5 is amended to delete        Periodicals to add separate 5-digit and
Standard Mail (B) rates. E630 is revised    references to ‘‘Bulk Parcel Post,’’ revise
to change marking requirements for                                                        3-digit rates for both automation and
                                            ‘‘bulk Bound Printed Matter’’ to              nonautomation and to add new rate
Standard Mail (B). E640 is amended to       ‘‘presorted Bound Printed Matter,’’ add
clarify that Nonprofit rate mail may                                                      abbreviations for nonautomation 5-digit
                                            an exception to the zone separation           and 3-digit rates. P013 is revised to
qualify for automation rates. E652 is       requirement, and to add information on
revised to add provisions for DSCF and                                                    reflect payment for keys and
                                            preparation of drop shipment mail for         identification devices at First-Class Mail
DDU Parcel Post rates.                      Parcel Post DSCF and DDU rates. M073          and Priority Mail rates plus a $0.30 fee
F   Forwarding and Related Services         is revised to add information about           instead of single-piece Standard Mail
                                            permissibility and preparation                (A) rates, to delete sections concerning
  F010 is amended throughout to delete      requirements for combining Standard
references to single-piece Standard Mail                                                  computation of single-piece Standard
                                            Mail (A) and Standard Mail (B) parcels        Mail (A) rates, to revise the breakpoints
(A). F010 is amended to revise              in mailings qualifying for new Parcel
forwarding and related services for                                                       for Standard Mail (A) rates, to delete
                                            Post rates (OBMC Presort, BMC Presort,        references to Bulk Parcel Post, and to
Periodicals and for Standard Mail (A) to    DSCF, and DDU). M120 is revised to
show that return postage is subject to                                                    revise the term ‘‘bulk Bound Printed
                                            delete the sections on Presorted Priority     Matter’’ to ‘‘presorted Bound Printed
the First-Class or Priority Mail rates      Mail. M200 is revised to require
based on weight, except for machinable                                                    Matter.’’ P014.2 is revised to delete
                                            preparation of an SCF level of sack.          references to single-piece Standard Mail
Standard Mail (A) parcels returned          M130.2 and M130.3 are amended to
under Bulk Parcel Return Service                                                          (A). P030.1.5 is revised to reflect the
                                            revise their titles. M130.5 is revised to     new 13-ounce weight limit for First-
(BPRS). F020 is revised to remove           reflect the new 13-ounce weight limit
references to single-piece Standard Mail                                                  Class Mail. P030.5.4 is revised to delete
                                            for First-Class Mail. M200.3 is revised to    a reference to single-piece Standard
(A).                                        require preparation of an SCF sack for        Mail (A). P040.4.1 is revised to reflect
G   General Information                     nonletters, to delete the provisions for      the new rate marking requirements for
  G043 is revised to add names and          an optional origin/required entry 3-digit     First-Class and Standard Mail and
addresses of organizations from whom        sack, and to add provisions for an            delete examples for single-piece
barcode specifications and barcode          optional origin/required entry SCF sack.      Standard Mail (A). P100 is revised to
grading requirements can be obtained.       M620 is revised to change                     add payment provisions for mailing
                                            ‘‘nonautomation presort’’ to                  certain matter not eligible for Standard
L  Labeling Lists                           ‘‘Presorted,’’ to revise references to E620   Mail (A) rates that bears Standard Mail
  Section L100, including labeling list     and E630, and to revise rate marking          (A) markings at the single-piece First-
L102, ADCs—Presorted Priority Mail, is      requirements including time frames for        Class or Priority Mail rates. P600 is
deleted. New labeling list L605, BMCs—      changing the ‘‘Bulk Rate’’ marking to         revised to establish postage payment
Nonmachinable Parcel Post, is added.        ‘‘Presorted Standard.’’ M630 is amended       methods for Standard Mail (B)
                                            to add preparation requirements for           containing a combination of discounts,
M    Mail Preparation and Sortation         DSCF and DDU rates; to change                 to delete information on payment and
   M011.1 is revised to add the             ‘‘nonautomation presort’’ to                  use of ‘‘SNGLP’’ marking for single-
definition of an overflow sack for Parcel   ‘‘Presorted;’’ to revise references to E620   piece Standard Mail (A), and to clarify
Post DSCF rate mailings. M011.1 is          and E630; and to revise rate marking          that for mailings of identical weight,
revised to amend the definition of a        requirements for all Standard Mail (B)        Standard Mail (A) postage may be
mailing. M012 is revised to change          including placement of subclass               affixed to all pieces in the mailing at the
marking requirements for Standard Mail      markings, new generic rate markings for       lowest rate in the mailing job. P710 is
(A) and (B), to clarify that no marking     drop shipment rates, revising ‘‘bulk          revised to reflect the new marking
is needed for single-piece First-Class      Bound Printed Matter’’ to ‘‘presorted         requirements for regular rate Standard
Mail, and to specify time frames for the    Bound Printed Matter, eliminating the         Mail (A). P750 is revised to include
new marking requirements. In M032,          ‘‘Bulk Parcel Post’’ marking, removing        instructions on the new Parcel Post
Exhibit 1.3 is revised to show headings     the requirement for a 5-digit or 3-digit      DSCF and DDU rates. P760 is revised to
for new Periodicals rate levels and for     ZIP Code in the rate marking for DBMC         change ‘‘nonautomation’’ to ‘‘Presorted’’
new Parcel Post rates and to change the     rates, eliminating the ‘‘catalog rate’’       for Standard Mail (A) and to delete
                  Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                          37967

references to single-piece Standard Mail     PART 111—[AMENDED]                             August), guinea fowl, quail, and turkeys
(A).                                                                                        are acceptable in the mail only if:
                                               1. The authority citation for 39 CFR         *     *    *     *     *
R    Rates and Fees                          part 111 continues to read as follows:           f. The shipment bears special
  The entire module is revised to reflect      Authority: 5 U.S.C. 552(a); 39 U.S.C. 101,   handling postage in addition to regular
new rates and fees.                          401, 403, 404, 3001–3011, 3201–3219, 3403–     postage, unless sent at the First-Class
                                             3406, 3621, 5001.                              Mail or Priority Mail rate.
S Special Services
                                               2. Revise the following sections of the      *     *    *     *     *
   S010 is revised to add information on     Domestic Mail Manual as follows:               C024 Other Restricted or Nonmailable
claims for the new bulk insurance                                                           Matter
                                             A     Addressing
service. S070 is revised to clarify
applicability of Priority Mail Drop          A000       Basic Addressing                    *      *      *     *     *
Shipment. S911 is revised to reflect         *      *      *    *     *                     18.0 ODD-SHAPED ITEMS IN
changes to indemnity coverage for                                                           ENVELOPES
registered mail. S913 is revised to          A060       Detached Address Labels (DALs)
eliminate references to single-piece         *      *      *    *     *                     18.1 Nonmailable
Standard Mail (A), to provide                                                               [Amend 18.1 by removing ‘‘Standard
clarification to matter eligible for         5.0    POSTAGE                                 Mail (A) rate’’ to read as follows:]
insurance, and to include rules for the      *      *      *    *     *                        Pens, bottle caps, and similar odd-
new bulk insurance service. S915.1 and                                                      shaped items are not acceptable in
S915.2 are amended for clarity. S917 is      5.3    Returns
                                                                                            letter-size envelopes at the single-piece
amended to delete availability of return     [Amend the first sentence of 5.3 by            First-Class Mail rate.
receipt for merchandise with single-         replacing ‘‘Standard Mail’’ with ‘‘First-      *     *      *    *     *
piece Standard Mail (A). S921 is             Class Mail’’ to read as follows:]
amended to delete availability of COD                                                       C050       Mail Processing Categories
                                                Postage for excess or undeliverable
with single-piece Standard Mail (A).         DALs that are properly endorsed or for         *     *      *     *   *
S922 is revised to change references         items being returned is computed at the        [Amend 5.0 to add ‘‘Nonmachinable’’ to
from BRMAS to QBRM, to remove                applicable single-piece rate (First-Class      the title as follows:]
eligibility requirements for BRMAS           Mail, Priority Mail, or Standard Mail
(these are relocated under QBRM in                                                          5.0 IRREGULAR PARCEL
                                             (B)) applicable to the combined weight         (NONMACHINABLE)
E150), to require all BRM bearing            of the DAL and the accompanying item,
barcodes to meet the requirements of         regardless of whether both are being           *     *      *     *   *
C810 and C840 (except basis weight           returned. * * *                                [Amend 6.0 to add ‘‘Nonmachinable’’ to
requirements for envelopes in C810.7.1),                                                    the title as follows:]
                                             *     *     *     *     *
and to replace current BRM standards
                                                                                            6.0 OUTSIDE PARCEL
relative to reflectance requirements,        C     Characteristics and Content
                                                                                            (NONMACHINABLE)
paper weight, and self-mailers with          C000       General Information
current mailpiece design requirements                                                       *      *      *     *     *
in C810 and C830 (except basis weight        C010       General Mailability Standards
                                                                                            C100       First-Class Mail
requirements for envelopes in C810.7.1,      1.0 MINIMUM AND MAXIMUM
and the retention and clarification of                                                      1.0    DIMENSIONS
                                             DIMENSIONS
current prohibition of red fluorescence                                                     1.1    Maximum Weight and Size
in excess of 4.0 phosphor meter units).      *      *      *    *     *
S923 is revised to eliminate the return                                                     [Revise 1.1 to show the new maximum
                                             1.6    Nonstandard Surcharge
of merchandise return service pieces at                                                     weight of 13 ounces to read as follows:]
single-piece Standard Mail (A) rates, to     [Amend 1.6 by removing ‘‘or C600,                 Each piece may not weigh more than
prescribe new rates of return and            respectively,’’ and ‘‘or Single-Piece          70 pounds. Matter at First-Class Mail
corresponding markings, and to reflect       Standard Mail’’ to read as follows:]           rates may not exceed 13 ounces. The
new standards concerning registered            Because of address placement                 combined length and girth of a piece
mail used with that service. S924 is         (orientation) under C100, a mailable           (i.e., the length of its longest side plus
revised to eliminate references to single-   piece of First-Class Mail weighing 1           the distance around its thickest part)
piece Standard Mail (A). S930 is             ounce or less can be subject to the            may not exceed 108 inches. (Lower size
amended to remove availability of            corresponding nonstandard surcharge.           or weight standards apply to mail
special handling service for single-piece                                                   claimed at certain rates or addressed to
                                             *     *     *     *     *
Standard Mail (A), and to correct the                                                       certain APOs and FPOs.)
rules to allow First-Class Mail and          C022       Perishables                         *       *    *     *      *
Priority Mail to receive special             *      *      *    *     *                     4.0    NONSTANDARD MAIL
handling.
                                             3.0    LIVE ANIMALS                            [Revise 4.0 to include keys and
List of Subjects in 39 CFR Part 111                                                         identification devices as items subject to
                                             3.1    Day-Old Poultry
    Postal Service.                                                                         the nonstandard classification as
                                             [Amend 3. 1f by adding ‘‘or Priority           follows:]
  For the reasons discussed above, the       Mail’’ for clarity as follows:]                  Except for Priority Mail, any piece of
Postal Service hereby adopts the               Day-old poultry vaccinated with              First-Class Mail (including keys or
following amendments to the Domestic         Newcastle disease (live virus) is              identification devices) weighing 1 ounce
Mail Manual, which is incorporated by        nonmailable. Live day-old chickens,            or less and not claimed at a card rate is
reference in the Code of Federal             ducks, geese, partridges, pheasants            nonstandard and subject to the
Regulations (see 39 CFR Part 111).           (mailable only from April through              applicable surcharge if its thickness
37968           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

exceeds 1⁄4 inch or, if based on the          2.0 NONMACHINABLE SURCHARGE                if a DPBC appears in the lower right
placement (orientation) of the address,         Items described in E630 and mailed at    corner. A Qualified Business Reply Mail
its length exceeds 111⁄2 inches, its height   the inter-BMC/ASF Parcel Post rates are    piece and other barcoded letter-size
exceeds 61⁄8 inches, or its aspect ratio      subject to a nonmachinable surcharge       Business Reply Mail must only bear a
(length divided by height) is less than       unless the applicable special handling     ZIP+4 barcode; the ZIP+4 barcode may
1.3 or more than 2.5.                         fee is paid.                               appear in the address block when
*      *    *    *      *                                                                printed on an insert that appears
                                              *      *     *   *    *                    through a window or on an address
C600    Standard Mail                         C800       Automation-Compatible Mail      label affixed directly to the piece; or
1.0    DIMENSIONS                                                                        may appear in the lower right corner
                                              C810       Letters and Cards               either printed directly on the mailpiece
1.1    Standard Mail (A)                      *      *      *     *    *                 or on an insert that appears through a
[Amend 1.1b to read as follows:]                                                         window. An automation rate flat-size
                                              2.0    DIMENSIONS                          piece must not bear a 5-digit barcode.
  These dimensional standards apply to
Standard Mail (A):                            *      *      *     *    *                 *     *     *     *     *
*     *    *      *    *                      2.3 Maximum Weight                         [Add new C850 to read as follows.]
  b. Presorted (3⁄5 and basic rate)                                                      C850 Standard Mail (B) Barcode
                                              [Amend 2.3c through 2.3f to revise the
Regular and Nonprofit Standard Mail                                                      Standards
                                              maximum ounce weights for heavy
(A) are subject only to the basic
                                              letters to read as follows:]               1.0 BARCODE SYMBOLOGIES
mailability standards in C010.                   Maximum weight limits are as
*     *    *      *    *                      follows:                                   1.1 Basic Requirement
1.2    Standard Mail (B)                      *      *     *     *     *                   Every addressed mailpiece eligible for
                                                 c. 3.3087 ounces: automation Regular    a Standard Mail (B) barcode discount
[Amend and renumber 1.2 as follows to                                                    described in E630 must bear a properly
                                              Standard Mail (A) heavy letters, subject
specify requirements for oversized                                                       prepared barcode that represents the
                                              to 7.5.
Parcel Post and add a Parcel Post                                                        correct ZIP Code information for the
                                                 d. 3.3062 ounces: automation
balloon rate:]                                                                           address on the mailpiece plus the
                                              Enhanced Carrier Route heavy letters,
   These dimensional standards apply to                                                  appropriate verifier character suffix or
                                              subject to 7.5.
Standard Mail (B):                                                                       application identifier prefix characters
                                                 e. 3.2873 ounces: automation
   a. No piece may weigh more than 70
                                              Nonprofit Standard Mail (A) heavy          appropriate for the barcode symbology
pounds, except matter at Bound Printed
                                              letters, subject to 7.5.                   used as described in 1.0 through 4.0.
Matter rates may not weigh more than
                                                 f. 3.3103 ounces: automation            The combination of appropriate ZIP
15 pounds.
                                              Nonprofit Enhanced Carrier Route,          Code and appropriate verifier or
   b. Except for Parcel Post under 1.2c,
                                              automation First-Class Mail, and           application identifier characters
the combined length and girth of a piece
                                              automation Periodicals heavy letters,      uniquely identifies the barcode as the
(i.e., the length of its longest side plus
                                              subject to 7.5.                            postal routing code.
the distance around its thickest part)
may not exceed 108 inches.                    *      *     *     *     *                 1.2 Permissible Barcode Symbologies.
   c. Parcel Post pieces measuring over       C820       Flats                             Until January 10, 2004, barcodes must
108 inches in combined length and                                                        be printed in one of the following
girth, but not more than 130 inches in        *      *      *     *    *
                                                                                         symbologies: UCC/EAN Code 128; USS
combined length and girth, are mailable       2.0    DIMENSIONS                          Code 128; USS Code I 2⁄5; and USS Code
at the applicable oversized rate.                                                        39. Effective January 10, 2004, only the
   d. Parcel Post pieces measuring over       *      *      *     *    *
                                                                                         UCC/EAN Code 128 may be used.
84 inches in combined length and girth,       2.4    Maximum Weight
but not more than 108 inches in                                                          1.3 Postal Routing Barcode Elements
                                              [Revise 2.4 to show the new maximum
combined length and girth, and                weight of 13 ounces to read as follows:]     a. UCC/EAN Code 128. For barcodes
weighing less than 15 pounds are                Maximum weight limits are as             prepared using the UCC/EAN Code 128
mailable at the rate equal to that of a 15-   follows:                                   symbology the postal routing barcode
pound parcel for the zone to which the          a. For First-Class Mail, 13 ounces.      must consist of the leading Application
parcel is addressed.                            b. For Periodicals, 16 ounces.           Identifier (AI) of ‘‘420’’ followed by the
   e. Two or more packages may be               c. For Standard Mail (A), less than 16   ZIP Code for the address on the
mailed as a single parcel, if they are        ounces                                     mailpiece. The ZIP Code for the address
about the same size or shape or if they                                                  on the mailpiece may be either the 5-
                                              *     *     *     *    *
are parts of one article, if they are                                                    digit ZIP Code or the ZIP+4 code. The
securely wrapped or fastened together,        C840       Barcoding Standards             Application Identifier indicates the
and if they do not together exceed the        *      *      *     *    *                 meaning of the barcode. The USPS has
weight or size limits.                                                                   designated 420 as the AI for domestic
   f. Lower size or weight standards          8.0    5-DIGIT AND ZIP+4 BARCODES          postal routing barcodes (and 421 as the
apply to mail claimed at certain rates,       [Revise the title and add a new sentence   AI for international postal routing
addressed to certain APOs and FPOs, or        to 8.1 to read as follows:]                barcodes). UCC/EAN Code 128 barcodes
sent by the Department of State to U.S.                                                  MUST NOT include the trailing verifier
Government personnel abroad.                  8.1    Permissibility                      character ‘‘9’’.
   g. Pieces might be subject to                An automation rate letter-size piece       b. Other Permissible Symbologies. For
minimum weight or dimensions based            may not bear a 5-digit or ZIP+4 barcode    the USS Code 128, USS Code I 2⁄5, and
on the standards for specific rates.          in the lower right corner (barcode clear   USS Code 39 symbologies, the postal
[Delete current 2.1, renumber current         zone); the piece may bear a 5-digit or     routing barcode must consist of the 5-
2.2 as 2.0 and revise to read as follows:]    ZIP+4 barcode in the address block only    digit ZIP Code for the address on the
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                        37969

mailpiece, followed by the 1-digit          least 70% of the barcodes in each            character for the other three barcode
verifier character ‘‘9.’’ Barcodes          mailing must measure ANSI grade A or         symbologies) must be printed between
prepared under these symbologies            B. For all printing processes, it is         1⁄8 inch and 1⁄2 inch below the barcode

MUST NOT include the prefix ‘‘420.’’        strongly recommended that the symbols        preceded by the word ‘‘ZIP’’ in 10 point
                                            be tested to ensure that they meet           or larger bold sans serif type. In
1.4 Technical Specifications
                                            specification requirements. Information      addition, the location of the word ‘‘ZIP’’
   UCC/EAN Code 128 barcodes must           concerning ANSI guidelines X3.182–           may be alternatively placed no less than
meet the technical specifications in the    1990 may be obtained from: AMERICAN          10 time the average narrow bar or space
‘‘UCC/EAN–128 Application Identifier        STANDARDS INSTITUTE INC, 11 W                element width and not more than 1⁄2
Standard,’’ which can be obtained from      42ND ST, NEW YORK NY 10036–8002,             inch to the left of the barcode, in 12
Uniform Code Council, Inc. and the          (212) 642–4900                               point or larger bold sans serif type.
specifications in 2.0. The UCC
                                            2.4 Substrate Material                       *      *    *      *     *
specifications can be obtained from:
UNIFORM CODE COUNCIL, INC, 8163               All barcode symbols must be printed        D   Deposit, Collection, and Delivery
OLD YANKEE RD STE J, DAYTON OH              on substrate material that preserves the     D000 Basic Information
45458–1839                                  optical specification as described in the
   USS Code I 2/5, USS Code 39, and         AIM–USA Uniform Symbology                    D010 Pickup Service
USS Code 128 barcodes must meet the         Specification documents. Typically,          1.0 BASIC STANDARDS
technical specifications in Uniform         white label stock commonly used for
Symbology Specification (USS)               barcode generation is suitable,              1.1 Availability
documents USS–I 2/5, USS–39, and            providing it is not glossy (causing          [Amend 1.1b to delete the term ‘‘single-
USS–128, respectively, and the              mirror-like [specular] reflection) nor       piece rate’’ to read as follows:]
specifications in 2.0. The USS Code         prone to smearing or smudging.                 Subject to the standards in D010,
specifications are available from:                                                       pickup service is available from
AUTOMATIC IDENTIFICATION                    3.0   BARCODE LOCATION
                                                                                         designated post offices for:
MANUFACTURERS (AIM), 634 ALPHA              3.1 General Standards
DR, PITTSBURGH PA 15238–2802,                                                            *     *     *      *     *
                                               The address and barcode must be on          b. Priority Mail.
www.aimusa.org
                                            the side of the mailpiece with the largest   *     *     *      *     *
1.5 One Postal Routing Barcode.             surface area, except that the address and
                                            barcode must be on the top surface of        1.2 Not Available
   A mailer may include more than one
barcode on a mailpiece provided there       the mailpiece when its shape requires        [Amend 1.2c to include all destination
is only one barcode that is prepared        specific orientation for stability during    entry rate pieces as follows:]
under the postal routing code structure.    automated processing. The barcode              Pickup service is not available for
That is, a mailpiece must contain only      should be placed immediately adjacent        pieces:
one barcode encoded with a 5-digit          to the address and at least 1 inch from      *     *     *    *      *
numeric code followed by the character      the edge of the mailpiece. The delivery        c. Claimed at the Parcel Post DBMC,
‘‘9’’ or encoded with ‘‘420’’ followed by   address or barcode may be printed on an      DSCF, or DDU destination entry rates, or
a 5-digit or 9-digit numeric code.          attachment or on an enclosure in a           claiming the Parcel Post OBMC Presort
                                            window envelope, subject to the              discount.
2.0   BARCODE CHARACTERISTICS               reflectance standards in 2.2.                *     *     *    *      *
2.1 Dimensions                              3.2 Barcode Clear Zone                       D600 Standard Mail
   The preferred range of widths of           The barcode must be located as
narrow bars and spaces is 0.015 inch to                                                  *     *     *     *    *
                                            specified in 3.1. No printing may appear
0.017 inch. The width of the narrow         in an area 1⁄8 inch above and below the      2.0 MAIL DEPOSIT
bars or spaces must be at least 0.013       barcode regardless of location. A
inch but no more than 0.021 inch. All                                                    [Amend the heading and contents of 2.1
                                            minimum clear zone equal to 10 times         to read as follows:]
bars must be at least 0.75 inch high. The   the average measured narrow element
wide/narrow bar width ratio for Code I      (bars or space) width must be                2.1 Single-Piece Standard Mail (B)
2/5 and Code 39 must be at least 2.5 to     maintained to the left and right of the      Rates
1.                                          barcode.                                       Single-piece rate Standard Mail (B)
2.2 Reflectance                             4.0   BARCODE CONTENT                        must be deposited at a time and place
  When measured in the red spectral                                                      specified by the mailing post office
                                            4.1 Human-Readable Barcode                   postmaster. Metered mail must be
range between 630 nanometers and 675
                                            Information                                  deposited in locations under the
nanometers, the minimum white bar
(space) reflectance (Rs) must be greater       If the barcode is printed on the same     jurisdiction of the licensing post office,
than 50%, and the maximum bar               label as the mailing address, and in         except as permitted in D072. Permit
reflectance (Rb) must be less than 25%.     close proximity to that address, the         imprint mail must be presented at the
The minimum print reflectance               human-readable equivalent of the ZIP         post office under P040 or P700.
difference (Rs–Rb) is 40%. Reflectance      Code or ZIP+4 code encoded in the            Precanceled stamp mail must be
must be measured with a USPS-               barcode may be omitted. If the barcode       presented at the post office under P023.
specified reflectance meter or barcode      is printed on a separate label from the      E   Eligibility
verifier.                                   mailing address, the human-readable
                                            equivalent of the 5-digit ZIP Code or        E000 Special Eligibility Standards
2.3 Quality                                 ZIP+4 code encoded in the barcode (i.e.,     *     *     *     *    *
  All barcodes in each mailing must         omitting the existing ‘‘420’’ Application
measure American National Standards         Identifier for UCC/EAN 128 and               E060 Official Mail (Penalty)
Institute (ANSI) grade C or above. At       omitting the existing ‘‘9’’ verifier         *     *     *     *    *
37970              Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

5.0 SERVICES, CLASSES, RATES,                E120 Priority Mail                             All pieces of nonautomation First-
PREPARATION, AND DETENTION                                                                Class Mail must:
                                             1.0    BASIC STANDARDS
*      *      *    *     *                                                                  a. Meet the basic standards for First-
                                             1.1 Description                              Class Mail in E110.
5.3    Basic Preparation                     [Revise 1.1 to reflect the new maximum         b. Weigh 13 ounces or less.
[Revise 5.3d to incorporate the new 13-      weight of First-Class Mail to read as
                                             follows:]                                      c. Bear a delivery address.
ounce weight limit for First-Class Mail        Priority Mail is First-Class Mail            d. Meet the applicable documentation
as follows:]                                 weighing more than 13 ounces and, at         and postage payment standards in P012,
  Penalty mail must:                         the mailer’s option, any other mail          P013, and P100.
*     *     *     *     *                    matter (including regular First-Class        *     *     *    *     *
  d. Be endorsed for class or rate except    Mail) weighing 13 ounces or less.
                                             Priority Mail rates are based on zone        [Delete 1.3.]
for single-piece rate First-Class Mail not
exceeding 13 ounces and single-piece         and/or weight.                               2.0 SINGLE–PIECE RATE
rate Parcel Post. All mail with penalty      *     *    *      *     *
mail stamps, other than First-Class Mail     [Delete current 1.4, renumber current        [Revise 2.1, renumber 2.2 as 2.3, and
weighing 13 ounces or less, must be          2.2 as new 1.4 to read as follows:]          insert new 2.2 to read as follows:]
marked to show the class at which it is      1.4 Marking                                  2.1 Rate Application
mailed.                                        The marking ‘‘Priority’’ or ‘‘Priority
*     *     *     *     *                                                                    The single-piece rates for First-Class
                                             Mail’’ must be placed prominently on
                                             the address side of each piece of Priority   Mail are applied as follows:
12.0 PENALTY MERCHANDISE
                                             Mail.                                           a. The card rate applies to a card
RETURN SERVICE
                                             [Amend 2.0 to read as follows:]              meeting the applicable standards in
12.1    Description                                                                       C100 that is not eligible for or claimed
                                             2.0    RATES
                                                                                          at the Presorted rate, an automation rate,
[Amend 12.1 by inserting ‘‘(B)’’ and by      2.1 Application                              or a qualified business reply mail
removing ‘‘Single-Piece Standard Mail’’
                                               Priority Mail rates apply to pieces        (QBRM) rate.
to read as follows:]
                                             meeting the standards in 1.0.                   b. The letter rate applies to any other
   Merchandise return service allows a
                                             2.2 Flat Rate Envelope                       First-Class Mail (letter, flat, and parcel)
merchandise return permit holder to
                                                                                          weighing 13 ounces or less that is not
authorize individuals and organizations        Any amount of material that can be
to send single-piece First-Class Mail        mailed in the special flat rate envelope     eligible for and claimed at the card rate,
(including Priority Mail) and single-        available from the USPS is subject to the    the Presorted rate, an automation rate, a
piece Standard Mail (B) (Parcel Post,        2-pound Priority Mail rate, regardless of    qualified business reply mail (QBRM)
Special Standard Mail, and Bound             the weight of the material placed in the     rate, or required to be paid at a rate for
Printed Matter) to the permit holder.        envelope.                                    keys and identification devices.
The permit holder pays the return            2.3 Balloon Rate                             2.2 Keys and Identification Devices
postage and fees.
                                               Items weighing less than 15 pounds            Keys and identification devices
*     *     *    *     *                     but measuring more than 84 inches in         (identification cards or uncovered
E 100 First-Class Mail                       combined length and girth are charged        identification tags) that weigh not more
                                             a minimum rate equal to that for a 15-       than 13 ounces are mailed at the
E110       Basic Standards                   pound parcel for the zone to which it is     applicable single-piece letter rate, plus a
*      *      *    *     *                   addressed.                                   $0.30 fee, and if applicable, the
4.0    FEES                                  2.4 Keys and Identification Devices          nonstandard surcharge. The keys and
                                                Keys and identification devices           identification devices must bear,
4.1    Presort Mailing
                                             (identification cards or uncovered           contain, or have securely attached, the
[Amend the first sentence of 4.1 to          identification tags) that weigh more than    name and complete address of a person,
delete the reference to Presorted Priority   13 ounces but not more than 2 pounds         organization, or concern, with
Mail to read as follows:]                    are returned at the 2-pound Priority         instructions to return the piece to that
   A First-Class Mail presort mailing fee    Mail rate plus a $0.30 fee if they bear,     address and a statement guaranteeing
must be paid once each 12-month              contain, or have securely attached the       payment of postage due on delivery.
period at each office of mailing by any      name and complete address of a person,       *     *     *     *     *
person or organization entering mailings     organization, or concern, with
                                             instructions to return the piece to that     [Insert new 4.0 to read as follows:]
at automation or Presorted First-Class
Mail rates. Payment of one fee allows a      address and a statement guaranteeing         4.0 NONSTANDARD SURCHARGE
mailer to enter mail at both those rates.    payment of postage due on delivery.
                                             [Delete current 3.0 pertaining to               Single-piece (including keys and
Persons or organizations paying this fee
                                             Presorted Priority Mail.]                    identification devices) and Presorted
may enter mail of their clients as well
as their own mail. The fee may be paid       E130    Nonautomation Rates                  First-Class Mail are subject to the
in advance only for the next year and                                                     applicable nonstandard surcharge in
                                             1.0    BASIC STANDARDS                       R100 if they are not mailed at the card
only during the last 30 days of the
current service period. The fee charged      1.1 All Pieces                               rate, weigh 1 ounce or less, and meet the
is that which is in effect on the date of                                                 definition of nonstandard mail in C100.
                                             [Revise 1.1 to reflect the new maximum
payment.                                     weight for First-Class Mail to read as       *     *     *     *    *
*     *     *     *     *                    follows:]                                    [Insert new E150 to read as follows:]
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                        37971

E150 Qualified Business Reply Mail          3.0    RATES AND FEES                          b. Flat-size pieces in 5-digit packages
(QBRM) Rates                                                                             of six or more pieces each, placed in 5-
                                            3.1    Rates
                                                                                         digit sacks or palletized under M045.
1.0   BASIC STANDARDS                         The single-piece rates for QBRM First-
                                                                                         4.0 3-DIGIT RATES
1.1   Description                           Class Mail are applied to each returned
                                            piece as follows:                              Subject to M200, 3-digit rates apply
   Qualified Business Reply Mail              a. The QBRM rate for cards in R100         to:
(QBRM) is First-Class Mail that:            applies to a card meeting the applicable       a. Letter-size pieces in 5-digit and 3-
                                            standards in 1.0 and C100.                   digit packages of six or more pieces
   a. Is letter-size and is prepared to                                                  each, placed in 3-digit trays.
meet the automation compatibility             b. The QBRM rate for letters in R100
                                            applies to a letter meeting the applicable     b. Flat-size pieces in 5-digit and 3-
requirements in C810 (except 7.1).                                                       digit packages of six or more pieces
                                            standards in 1.0 that is not eligible for
   b. Meets all the Business Reply Mail     and claimed at the QBRM rate for cards.      each, placed in 3-digit sacks or
(BRM) standards in S922.                                                                 palletized under M045.
                                            3.2    Fees
   c. Has postage and BRM per-piece fees                                                 5.0 BASIC RATES
paid through a business reply mail            The following fees apply to QBRM
                                                                                           Basic rates apply to pieces prepared
advance deposit account.                    First-Class Mail:
                                                                                         under M200 that are not claimed at
                                              a. The annual BRM permit fee in S922
   d. Is authorized to mail at QBRM rates                                                carrier route, 5-digit, or 3-digit rates.
                                            and R900.
and fees under 2.0. During the
                                              b. The annual BRM accounting fee in        6.0 WALK-SEQUENCE DISCOUNTS
authorization process, the mailer is        S922 and R900.
assigned a unique ZIP+4 code for each                                                    *    *     *     *     *
                                              c. The QBRM fee in R900 for each
rate category of QBRM to be returned        returned piece.                              6.4 Density Standards
under the system (one for card-rate
                                            E200       Periodicals                       [Revise 6.4b, renumber 6.4c through
pieces, one for letter-size pieces
                                                                                         6.4d as 6.4d through 6.4e, insert new
weighing 1 ounce or less, and one for       E210       Basic Standards                   6.4c, and revise renumbered 6.4e to read
letter-size pieces weighing over 1 ounce                                                 as follows:]
                                            E211       All Periodicals
up to and including 2 ounces).                                                             Walk-sequence rate mailings are
                                            *      *       *    *        *               subject to these density standards:
   e. Bears the unique ZIP+4 code
assigned during the application process     14.0    BASIC RATE ELIGIBILITY               *     *      *     *     *
in the address of each piece distributed.   *      *       *    *        *                 b. Except under 6.4c, at least 125
The ZIP+4 code on each piece must be                                                     walk-sequenced addressed pieces must
the proper one assigned to the rate         14.4    Copies Mailed by Public              be prepared for each carrier route
category of the piece on its return. The    [Amend 14.4 by adding ‘‘Priority’’ and       receiving mail claimed at the high
ZIP+4 codes assigned for this program       ‘‘(B)’’ to read as follows:]                 density rate. Mail for carrier routes of
must be used only on the organization’s        The applicable single-piece First-        124 or fewer possible deliveries can
appropriate QBRM pieces.                    Class, Priority, or Standard Mail (B) rate   qualify for the high density rate if there
                                            is charged on copies of publications         are at least 125 addressed pieces for the
   f. Bears the correct barcode that                                                     route, or if pieces are addressed to every
corresponds to the unique ZIP+4 code        mailed by the general public (i.e., other
                                            than publishers or registered news           possible delivery on the route. This mail
in the address on each piece distributed.                                                may also qualify for the saturation rate,
The barcode must be correctly prepared      agents) and on copies returned to
                                            publishers or news agents.                   subject to 6.4e. In-County rate pieces
under C840 and S922.5.                                                                   may also qualify for high density rates
                                            *      *      *     *    *
   g. Bears a properly prepared facing                                                   under 6.4c.
identification mark (FIM) C on each         E230       Nonautomation Rates                 c. Mail may qualify for In-County high
piece distributed.                                                                       density rates when there are addressed
                                            1.0    BASIC INFORMATION                     pieces for a minimum of 25% of the
2.0   AUTHORIZATION                         *      *       *    *        *               total active possible deliveries on a
                                                                                         carrier route. If a route contains
  To participate in QBRM, the mailer        1.3    ZIP Code Accuracy
                                                                                         addresses both within and outside the
must submit a written request to open       [In the first sentence, change ‘‘3/5’’ to    county, the number of pieces addressed
a QBRM account to the postmaster or         ‘‘5-digit, 3-digit,’’ to read as follows:]   to the entire carrier route will be used
business mail entry manager at the post        All 5-digit ZIP Codes in addresses on     to determine if the 25% requirement has
office to which the pieces are to be        pieces claimed at the 5-digit, 3-digit, or   been met. However, for such carrier
returned. If the mailer’s request is        basic rates must be verified and             routes meeting the 25% requirement,
approved, the USPS issues the mailer an     corrected within 12 months before the        only the pieces for that carrier route that
authorization letter and instructions on    mailing date by a USPS-approved              are addressed to addresses within the
how to prepare BRM, including the           method. * * *                                county in which the original entry is
ZIP+4 codes to be used. The mailer          *     *      *      *      *                 located may qualify for the In-County
must have a valid BRM permit and pay        [Replace current 3.0 through 5.0 with        high density rates.
the annual accounting fee to participate    new 3.0 through 5.0 to read as follows:]     *     *      *     *     *
in QBRM. Preproduction samples, if                                                         e. More than one addressed piece per
provided with the request, are reviewed     3.0    5-DIGIT RATES                         delivery address may be included in a
by the USPS for compliance with the           Subject to M200, 5-digit rates apply       high density rate mailing and may be
relevant standards. Any BRM approved        to:                                          counted for the density standard, in
under the former Business Reply Mail          a. Letter-size pieces in 5-digit           6.4b, for the high density rate. Only one
Accounting System need not make             packages of six or more pieces each,         piece per delivery address may be
reapplication to qualify for QBRM.          placed in 5-digit trays.                     counted toward the density standards
37972              Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

for high density in 6.4c and for the          1.8 Documentation                              When the postage computed at the
saturation rate in 6.4d.                      [Amend the reference to single-piece        bulk Standard Mail (A) rates is higher
                                              rate mail to specify single-piece           than a Standard Mail (B) rate for which
7.0 COMBINING MULTIPLE
                                              Standard Mail (B) as follows:]              the matter and the mailing could qualify
PUBLICATIONS OR EDITIONS
                                                A postage statement, completed and        except for its weight, the Standard Mail
*      *      *    *       *                  signed by the mailer, using the correct     (B) rate may be paid without adding
7.4    Documentation Elements                 USPS form or an approved facsimile,         needless weight. When the Standard
                                              must be submitted with each mailing         Mail (B) rate is paid, the pieces must
[Amend the first sentence of 7.4 to read      except for single-piece rate Standard       bear the rate marking appropriate for the
as follows:]                                  Mail (B) mailings in which the correct      Standard Mail (B) rate at which postage
  Presort documentation required under        postage is affixed to each piece.           is paid. All other standards for bulk
P012 also must show the total number          Additional supporting documentation         Standard Mail (A) apply, including mail
of addressed pieces and copies of each        may be required by the standards for the    preparation.
publication or edition mailed to each         rate claimed or postage payment method      *     *     *     *     *
carrier route, 5-digit, and 3-digit           used.
destination. * * *                                                                        4.9   Preparation
*     *     *     *      *                    E612 Additional Standards for               [Amend 4.9b to read as follows:]
                                              Standard Mail (A)                              Each bulk rate mailing is subject to
E240       Automation Rates
                                              *    *     *     *     *                    these general standards:
*      *      *    *       *                  [Amend the heading of 4.0 by removing       *      *     *   *     *
2.0    RATE APPLICATION                       ‘‘BULK’’ to read as follows:]                  b. Each mailing must contain at least
                                              4.0   RATES                                 200 pieces or 50 pounds of pieces. See
[Replace current 2.1 through 2.3 with                                                     E620.1.2 for volume requirement
new 2.1 through 2.3 to read as follows:]      4.1 General Information                     eligibility unique to Presorted Standard
2.1    5-Digit Rates                          [Revise the section numbers and the         rate mailings. Other volume standards
                                              names of nonautomation rates and            also can apply, based on the rate
  Subject to M200, 5-digit automation                                                     claimed.
rates apply to:                               remove information about special
  a. Letters. 5-digit rates apply to groups   services to read as follows:]               *      *     *   *     *
of 150 or more pieces to the same 5-digit       All Standard Mail (A) rates are bulk      [Add new 4.10 as follows:]
or 5-digit scheme placed in a 5-digit or      rates (sometimes referred to as presort
                                                                                          4.10 Special Services
5-digit scheme tray or trays prepared         rates). Bulk rates apply to mailings
                                              meeting the basic standards in E611 and       Bulk rate Standard Mail (A) may not
under M810. (Preparation to qualify for                                                   use certified, collect on delivery (COD),
the 5-digit rate is optional, and if          the corresponding standards for
                                              Enhanced Carrier Route, automation,         insurance, registered, return receipt,
performed, need not be done for all 5-                                                    return receipt for merchandise, or
digit or 5-digit scheme destinations.)        Presorted, and destination entry in
                                              E620, E640, and E650 as appropriate for     special handling.
  b. Flats. 5-digit rates apply to pieces
in 5-digit packages of six or more pieces     the rate claimed. Nonprofit rates may be    *     *     *     *     *
each, prepared under M820 or M045.            used only by organizations authorized       [Revise the title of E620. Delete current
                                              by the USPS under E670. Not all             1.0. Move current E620.2.0 through 5.7
2.2    3-Digit Rates                          processing categories qualify for every     into E630. Renumber current E630.1.0
  Subject to M200, 3-digit automation         bulk rate.                                  through E630.2.9 as E620.1.0 through
rates apply to:                                                                           E620.2.9. Renumber E620.1.2 as
                                              4.2 Minimum Per-Piece Rates
  a. Letters. 3-digit rates apply to groups                                               E620.1.5; renumber E620.1.3 as
                                              [In the first sentence, change              E620.1.4; add new E620.1.2,E620.1.3,
of 150 or more pieces to the same 3-digit
                                              ‘‘nonautomation’’ to ‘‘Presorted’’ and      E620.1.6, and E620.2.10; and revise to
or 3-digit scheme placed in a 3-digit/
                                              amend the weight breakpoints for the        read as follows:]
scheme tray or trays under M810.
                                              minimum per-piece rates as follows:]
  b. Flats. 3-digit rates apply to pieces        The minimum per piece rates (i.e., the   E620 Nonautomation Standard Mail
in 3-digit packages of six or more pieces     minimum postage that must be paid for       (A) Rates
each, prepared under M820 or M045.            each piece) apply to Enhanced Carrier       1.0 PRESORTED REGULAR AND
2.3    Basic Rates                            Route rate pieces weighing no more          NONPROFIT RATES
                                              than 0.2066 pound rounded (3.3062
  Subject to M200, basic automation                                                       1.1 Basic Standards
                                              ounces rounded); Regular Presorted and
rates apply to:
                                              automation rate pieces weighing no            All pieces in a Presorted Regular or
  a. Letters. Basic rates apply to pieces
                                              more than 0.2068 pound rounded              Presorted Nonprofit Standard Mail (A)
prepared under M810 that are not
                                              (3.3087 ounces rounded); Nonprofit          mailing must:
claimed at 5-digit or 3-digit rates.
                                              Enhanced Carrier Route rate pieces            a. Meet the basic standards for
  b. Flats. Basic rates apply to pieces
                                              weighing no more than 0.2069 pound          Standard Mail in E611 and E612.
prepared under M820 or M045 that are
                                              rounded (3.3103 ounces rounded); and          b. Except as provided in 1.2, be part
not claimed at 5-digit or 3-digit rates.
                                              Nonprofit Presorted and automation rate     of a single mailing of at least 200 pieces
*     *     *     *     *                     pieces weighing no more than 0.2055         or 50 pounds of pieces qualifying for
E600       Standard Mail                      pound rounded (3.2873 ounces                Presorted Standard Mail (A). Regular
                                              rounded). * * *                             and Nonprofit mailings must meet
E610       Basic Standards                                                                separate minimum volumes.
                                              *     *      *     *    *
E611       All Standard Mail                                                                c. Bear a delivery address that
                                              4.6 Exception                               includes the correct ZIP Code or ZIP+4
1.0    BASIC INFORMATION:                     [Amend 4.6 by revising the second           code, unless an alternative address
*      *      *    *       *                  sentence to read as follows:]               format is used subject to A040.
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                          37973

Upgradable pieces are subject to             Standard Mail (A) markings and                   g. In a 5-digit or 3-digit sack of
additional standards in M610. Pieces         endorsements), provided the                   irregular parcels containing at least 125
prepared with detached address labels        requirements in P100 are met.                 pieces or 15 pounds of pieces.
are subject to additional standards in
                                             1.4   ZIP Code Accuracy                       1.6 Residual Shape (Parcel) Surcharge
A060.
  d. Be marked, sorted, and                     All 5-digit ZIP Codes included in            Presorted Standard Mail that is
documented as specified in M610.             addresses on pieces claimed at regular        prepared as a parcel, or is not letter-size
                                             Presorted and Nonprofit Presorted rates       or flat-size as defined in C050, is subject
1.2 Residual Volume Requirement                                                            to the residual shape surcharge.
                                             must be verified and corrected within
  Pieces in an Enhanced Carrier Route        12 months before the mailing date,
rate mailing that has separately met a                                                     2.0 ENHANCED CARRIER ROUTE
                                             using a USPS-approved method. The             RATES
200 piece or 50 pound minimum                mailer must certify that this standard
quantity requirement may be counted          has been met when the corresponding           2.1 All Pieces
toward the minimum quantity                  mail is presented to the USPS. This              All pieces in an Enhanced Carrier
requirement for a Presorted rate mailing,                                                  Route Standard Mail mailing (letters,
                                             standard applies to each address
provided that the Enhanced Carrier                                                         flats, or irregular parcels, including
                                             individually, not to a specific list of
Route rate mailing and the Presorted                                                       merchandise samples distributed with
                                             mailing. An address meeting this
rate mailing are part of the same mailing                                                  detached address labels) must:
                                             standard may be used in mailings at any
job and are reported on the same                                                              a. Meet the basic standards for
                                             other rates to which the standard
postage statement. Likewise, pieces in                                                     Standard Mail in E611 and E612.
                                             applies during the 12-month period
an automation rate mailing that has                                                           b. Be part of a single mailing of at
                                             after its most recent update.
separately met a 200 piece or 50 pound                                                     least 200 pieces or 50 pounds of pieces
minimum quantity requirement may be          1.5   Presorted Rates                         of Enhanced Carrier Route Standard
counted toward the minimum quantity                                                        Mail, except that automation basic
requirement for a Presorted rate mailing,       Presorted Regular or Nonprofit
                                             Standard Mail (3⁄5 and basic) rates apply     carrier route rate pieces are subject to a
provided that the automation rate                                                          separate 200-piece/50-pound minimum
mailing and the Presorted mailing are        to Regular or Nonprofit Standard Mail
                                             letters, flats, and machinable and            volume standard and may not be
part of the same mailing job and are                                                       included in the same mailing as other
reported on the same postage statement.      irregular parcels weighing less than 16
                                             ounces, that are prepared under M610          Enhanced Carrier Route mail. Regular
Pieces mailed at Presorted Standard                                                        and Nonprofit mailings must meet
Mail (A) rates must not be counted           or palletized under M045. Basic rates
                                             apply to pieces that do not meet the          separate minimum volumes.
toward the minimum volume                                                                     c. Be sorted to carrier routes, marked,
requirements for an Enhanced Carrier         standards for the 3⁄5 rates described
                                             below. Basic rate and 3⁄5 rate pieces         and documented under M045 (if
Route rate or an automation rate                                                           palletized) or M620.
mailing.                                     prepared as part of the same mailing are
                                             subject to a single minimum volume            2.2 Flats and Merchandise Samples
1.3 Residual Mail Subject to First-          standard. Pieces that do not qualify for
Class or Priority Mail Rates                                                                 Enhanced Carrier Route rate mail may
                                             the 3⁄5 rate must be paid at the basic rate   not be more than 11–3⁄4 inches high, 14
   Pieces prepared as Standard Mail (A)      and prepared accordingly. Pieces may          inches long, or 3⁄4-inch thick.
(i.e., bear Standard Mail (A) rate           qualify for the 3⁄5 rate if they are          Merchandise samples with detached
markings, ancillary service markings,        presented:                                    address labels may exceed these
etc.) that do not qualify for Enhanced          a. In quantities of 150 or more letter-    dimensions if the labels meet the
Carrier Route, automation, or Presorted      size pieces for a single 3-digit area,        standards in A060.
Standard Mail (A) rates are subject to       prepared in 5-digit or 3-digit packages of
the single-piece First-Class or Priority     10 or more pieces each and placed in 5-       2.3 Preparation
Mail rates as applicable for the weight      digit or 3-digit trays.                         Preparation to qualify for any of the
of the mailpiece. Metered pieces                b. In quantities of 150 or more            Enhanced Carrier Route rates is optional
weighing over 13 ounces, but less than       upgradable letter-size pieces (as defined     and need not be performed for all carrier
16 ounces that do not qualify for            in M610) for a single 3-digit area and        routes in a 5-digit area. An Enhanced
Standard Mail (A) rates, and any             placed in 5-digit or 3-digit trays.           Carrier Route mailing may include
mailpieces that do not qualify for                                                         pieces at basic, high-density, and
                                                c. In a 5-digit or 3-digit package of 10
Standard Mail (A) rates for which First-                                                   saturation Enhanced Carrier Route rates.
                                             or more flat-size pieces and placed in a
Class or Priority Mail service is desired,                                                 Automation basic carrier route rate
                                             5-digit or 3-digit sack containing at least
must be re-enveloped or otherwise                                                          pieces must be prepared as a separate
                                             125 pieces or 15 pounds of pieces.
prepared so that they do not bear                                                          mailing, subject to the eligibility
Standard Mail (A) markings,                     d. In a 5-digit or 3-digit package of 10
                                                                                           standards in E640.
endorsements and ACS codes, and must         or more flat-size pieces palletized under
bear the proper First-Class Mail or          M045.                                         2.4 Carrier Route Information
Priority Mail rate markings, ancillary          e. In a 5-digit, destination ASF (if          Except for mailings prepared with a
service endorsements, and ACS codes.         required), or destination BMC sack            simplified address under A040, carrier
Mailers who have pieces (other than          containing at least 10 pounds of              route codes must be applied to mailings
metered pieces weighing over 13              machinable parcels. (The 3⁄5 rates are        using CASS-certified software and the
ounces, but less than 16 ounces) that do     available only if all possible 5-digit        current USPS Carrier Route Information
not qualify for Standard Mail (A) rates,     sacks are prepared.)                          System (CRIS) scheme, hard copy CRIS
but that are prepared as Standard Mail          f. On a 5-digit, destination ASF (if       files, or another AIS product containing
(A), and who do not desire to receive        required), or destination BMC pallet of       carrier route information, subject to
First-Class Mail or Priority Mail service    machinable parcels. (The 3⁄5 rates are        A930 and A950. Carrier route
for those pieces, may enter their            available only if all possible 5-digit        information must be updated within 90
mailpieces ‘‘as is’’ (i.e., bearing the      pallets are prepared.)                        days before the mailing date.
37974           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

2.5   Sequencing                             2.8    Basic Rates                            1.3 Rate Eligibility
  Basic carrier route rate mail must be         Basic (nonautomation) carrier route           There are five Parcel Post rate
prepared either in carrier walk sequence     rates apply to each piece that is sorted      categories: Intra-BMC, Inter-BMC,
or in line-of-travel (LOT) sequence          under M620 into the corresponding             destination bulk mail center (DBMC),
according to LOT schemes prescribed by       qualifying groups:                            destination sectional center facility
the USPS (see M050). High-density and           a. Letter-size pieces in a full carrier    (DSCF), and destination delivery unit
saturation rate mailings must be             route tray, or in a carrier route package     (DDU). Intra-BMC, Inter-BMC, and
prepared in carrier walk sequence            of 10 or more pieces placed in a 5-digit      DBMC Parcel Post rates are calculated
according to schemes prescribed by the       carrier routes or 3-digit carrier routes      based on the zone to which the parcel
USPS.                                        tray.                                         is addressed and the weight of the
                                                b. Flat-size pieces in a carrier route     parcel. DSCF and DDU rates are
2.6   Addressing                                                                           calculated based on the weight of the
                                             package of 10 or more pieces palletized
   Saturation rate mail may be prepared      under M045, or placed in a carrier route      parcel. Generally, Intra-BMC rates apply
with detached address labels, subject to     sack containing at least 125 pieces or 15     to parcels mailed and delivered within
A060, or with an alternative addressing      pounds of pieces or in a 5-digit carrier      the same BMC service area and Inter-
format, subject to A040. High-density        routes sack.                                  BMC rates apply to parcels mailed in
pieces must have a complete delivery            c. Irregular parcels (merchandise          one BMC service area and delivered in
address or an address in occupant or         samples prepared with detached                a different BMC service area. Specific
exceptional format. Saturation pieces        address labels under A060) in a carrier       standards for Inter-BMC and Intra-BMC
addressed for delivery on a city route       route sack or in a carrier route carton(s)    rates and applicable discounts are
must have a complete delivery address        containing a total of 125 pieces or 15        described below. Generally, to qualify
or an address in occupant or exceptional     pounds of pieces, or in a 5-digit carrier     for destination entry rates (DBMC,
format, except that official mail from       routes sack or carton. (DALs must be in       DSCF, or DDU), mailers must enter their
certain government entities also may         carrier route packages of 10 or more          parcels at the destination BMC, SCF, or
use the simplified format. Saturation        pieces and prepared under A060.)              delivery unit postal facility that will
pieces for delivery on rural or highway                                                    process or deliver the parcels (see
                                             2.9    High-Density and Saturation            additional requirements in E652).
contract routes, or through general
delivery or a post office box, must have       High-density and saturation rates           Additional requirements for Parcel Post
a complete delivery address or an            apply to pieces qualified for the basic       rates and discounts (other than
alternative address format.                  rates that also meet the applicable           destination entry rates) are set forth
                                             addressing and density standards in 2.6       below.
2.7   Density                                                                                 a. Intra-BMC rates apply to all Parcel
                                             and 2.7.
  High-density and saturation rate                                                         Post originating and destining in the
                                             2.10 Residual Shape (Parcel)                  service area of the same BMC or ASF.
mailings are subject to these density        Surcharge
standards:                                                                                 Intra-BMC rates also apply to Parcel
                                               Enhanced Carrier Route mail that is         Post originating and destining in the
  a. There is no minimum volume per                                                        same state for Alaska and Hawaii and in
5-digit ZIP Code delivery area. Pieces       prepared as a parcel, or is not letter-size
                                             or flat-size as defined in C050, is subject   the same territory for Puerto Rico. See
need not be sent to all carrier routes                                                     Exhibit 1.3.
within a 5-digit delivery area.              to the residual shape surcharge.
                                                                                              b. Inter-BMC rates for machinable
  b. For the high-density rate, at least     [Revise the title of E630 as follows:]
                                                                                           parcels apply to all Parcel Post mail that
125 pieces must be prepared for each         E630    Standard Mail (B)                     weighs 35 pounds or less; is
carrier route for which that discount is                                                   machinable; originates in the service
claimed, except that fewer pieces may        [Delete current 630.1 through 630.2.
                                                                                           area of a BMC/ASF, or in Alaska,
be prepared and the high-density rate        Insert new 630.1 through 630.5.9, which
                                                                                           Hawaii, or Puerto Rico, and destinates
may be claimed for carrier routes of 124     combines former E620.2 through E620.5
                                                                                           outside that area; and is not eligible for
or fewer possible deliveries if a piece is   with former E630.3 and E630.4 to
                                                                                           destination entry rates.
addressed to every possible delivery on      reorganize and separate standards for
                                                                                              c. Inter-BMC rates for nonmachinable
the route. Multiple pieces per delivery      Standard Mail (A) from those for
                                                                                           Parcel Post include the nonmachinable
address can count toward this density        Standard Mail (B) and to include new
                                                                                           surcharge and apply to all inter-BMC/
standard.                                    Standard Mail (B) rate categories to read
                                                                                           ASF Parcel Post mail that weighs more
  c. For the saturation rate, pieces must    as follows:]
                                                                                           than 35 pounds or otherwise is
be addressed either to 90% or more of        1.0    PARCEL POST                            nonmachinable as defined in 1.4;
the active residential addresses or to                                                     originates in the service area of a BMC/
75% or more of the total number of           1.1    Basic Standards
                                                                                           ASF, or in Alaska, Hawaii, or Puerto
active possible delivery addresses,            Parcel Post is Standard Mail weighing       Rico, and destinates outside that area;
whichever is less, on each carrier route     16 ounces or more that is not mailed as       and is not eligible for destination entry
receiving this mail, except that mail        Bound Printed Matter, Special Standard        rates.
addressed in the simplified address          Mail, or Library Mail. Any Standard              d. Parcel Post for which OBMC
format must meet the 100% coverage           Mail (B) matter may be mailed at Parcel       Presort, BMC Presort, and barcoded
standard in A040. Multiple pieces per        Post rates, subject to the basic standards    discounts are claimed, and parcel post
delivery address do not count toward         in E611 and E613.                             which is mailed at a destination entry
this delivery standard. Sacks with fewer                                                   rate (DBMC, DSCF, DDU (E652)), must
                                             1.2    Enclosures
than 125 pieces and less than 15 pounds                                                    be part of a mailing of 50 or more Parcel
of pieces may be prepared to a carrier          Parcel Post may contain any printed        Post rate pieces. Eligibility for one of
route when the saturation rate is            matter mailable as Standard Mail (A), in      those rates or discounts does not require
claimed for the contents and the             addition to the enclosures and additions      a separate 50 qualifying pieces per rate
applicable density standard is met.          listed in E611.                               or per discount. Eligibility for more than
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                         37975

one of those rates or discounts in the       1.4   Nonmachinable Surcharge                  2.0 BOUND PRINTED MATTER
same Parcel Post mailing is possible,
                                                The nonmachinable surcharge applies         2.1 Description and Rate Categories
provided there are a total of at least 50
pieces of mail qualifying for any or all     only to the items listed in 1.4a through       [Renumber former E620.3.1 as E630.2.1
Parcel Post rates in the mailing and all     1.4i if mailed at the Inter-BMC/ASF            and revise to include new rate
other preparation and eligibility            Parcel Post rates and no special               categories as follows:]
requirements for the rates or discounts      handling fee is paid. The                        Bound Printed Matter is Standard
are met.                                     nonmachinable surcharge applies to             Mail weighing at least 1 pound but not
   e. The bulk mail center (BMC) Presort     items within these categories:                 more than 15 pounds and meeting the
per-piece discount applies to pieces of         a. A parcel more than 34 inches long,       standards in E611, E613, and E630.
inter-BMC Parcel Post sorted to BMC          17 inches wide, 17 inches high, or             Bound Printed Matter rates are based on
destinations under L601 for machinable       weighing more than 35 pounds.                  zones and on the weight of the piece.
pieces and sorted to BMC and ASF                                                            The rate categories are as follows:
                                                b. A parcel containing more than 24           a. Single-Piece Rate. The single-piece
destinations for nonmachinable pieces        ounces of liquid in glass containers, or       rate applies to Bound Printed Matter not
under L605. To qualify, machinable           1 gallon or more of liquid in metal or         mailed at the presorted rate or carrier
pieces must be placed in pallet boxes on     plastic containers.                            route rate.
pallets and nonmachinable pieces must                                                         b. Presorted Rate. The presorted rate
                                                c. An insecurely wrapped or metal-
be placed directly on pallets under                                                         applies to Bound Printed Matter
                                             banded parcel.
M041 and M045. The mail must be                                                             prepared in a mailing of at least 300
entered at a postal facility that is not a      d. A can (paint, etc.), roll, or tube, or
                                             wooden or metal box.                           pieces, prepared and presorted as
BMC and be part of a mailing containing                                                     specified in M045 and M630.
50 or more Parcel Post rate pieces.             e. A shrub or tree.                           c. Carrier Route Rate. The carrier
   f. The origin bulk mail center presort       f. A perishable, such as eggs.              route rate applies to Bound Printed
(OBMC Presort) per-piece discount                                                           Matter prepared in a mailing of at least
                                                g. Books, printed matter, or business
applies to pieces of inter-BMC Parcel                                                       300 pieces presorted to carrier routes,
                                             forms weighing more than 25 pounds.
Post sorted to BMC destinations under                                                       prepared and presorted as specified in
L601 for machinable pieces and sorted           h. A high-density parcel weighing
                                                                                            M045 and M630.
to BMC and ASF destinations for              more than 15 pounds and exerting more
nonmachinable pieces under L605. To          than 60 pounds per-square-foot pressure        2.2 Characteristics
qualify, machinable pieces must be           on its smallest side.                          [Renumber former E620.3.2 as E630.2.2.]
placed in pallet boxes on pallets and           i. A film case weighing more than 5         *    *   *     *    *
nonmachinable pieces must be placed          pounds or with strap-type closures,
directly on pallets under M041 and           except any film case the USPS                  2.3 Combining Pieces
M045. The mail must be entered at a          authorizes to be entered as a machinable       [Renumber former E620.3.3 as E630.2.3.]
BMC listed in L601 and be part of a          parcel under C050 and to be identified         *    *   *    *     *
mailing containing 50 or more Parcel         by the words ‘‘Machinable in United
Post rate pieces.                            States Postal Service Equipment,’’             2.4 Enclosures
   g. The barcoded discount applies to       permanently attached as a                      [Renumber former E620.3.4 as E630.2.4.]
Parcel Post machinable parcels (C050)        nontransferable decal in the lower right       *    *     *    *     *
that each bear a correct, readable           corner of the case.                            [Add new 2.5 to specify barcoded
barcode under C850 for the ZIP Code of                                                      discount standards as follows:]
                                             1.5   Fees
the delivery address; are part of a
mailing of 50 or more Parcel Post rate                                                      2.5 Barcoded Discount
                                             Renumber former E620.2.6 as E630.1.5
pieces; are not mailed at the DSCF or        and revise to read as follows:]                   The barcoded discount applies to
DDU rates; and if claiming the DBMC                                                         machinable parcels (C050) bearing a
                                               Parcel Post mail is subject to these         correct, readable barcode under C850 for
rates, are not entered at an ASF. An
                                             fees, as applicable:                           the ZIP Code shown in the delivery
exception is that properly prepared
machinable pieces of DBMC rate mail            a. The fee for mailing at destination        address that are part of a mailing of at
entered at the Phoenix, AZ, ASF may          BMC (DBMC), destination sectional              least 50 Bound Printed Matter pieces,
claim the barcoded discount because          center facility (DSCF), and destination        and are mailed at the single-piece rates
that facility uses barcode scanning          delivery unit (DDU) Parcel Post rates          or, under the following conditions,
equipment.                                   must be paid once each 12-month                mailed at the presorted rates. Except for
   h. Pieces measuring over 108 inches       period at each post office of mailing by       5-digit bedloaded bundles, presorted
but not more than 130 inches in              or for any person or organization that         Bound Printed Matter that is prepared
combined length and girth, are mailable      mails at the destination entry rates,          under the machinable parcel
at the applicable oversized Parcel Post      except as provided otherwise for plant-        preparation standards in M045 and
rate.                                        verified drop shipments. All destination       M630 is eligible for the barcoded
   i. Pieces measuring over 84 inches,       entry rates are covered under the              discount. Bedloaded bundles of
but not more than 108 inches in              payment of a single annual fee. The fee        presorted Bound Printed Matter that are
combined length and girth and weighing       may be paid in advance only for the            required to be prepared under the
less than 15 pounds are subject to the       next year and only during the last 30          sortation standards for flats and
rate equal to that of a 15-pound parcel      days of the current service period. The        irregular parcels are not eligible for
for the zone to which the parcel is          fee charged is that which is in effect on      barcoded discounts. Carrier route Bound
addressed.                                   the date of payment (R600).                    Printed Matter is not eligible for the
                                               b. The Parcel Post pickup fee must be        barcoded discount.
Exhibit 1.3 BMC/ASF Service Areas            paid every time pickup service is              [Renumber E630.3.1 as 2.6 and revise to
[Renumber and insert former Exhibit          provided, subject to the corresponding         delete references to E620 to read as
E620.2.4 as Exhibit E630.1.3.]               standards in D010.                             follows:]
37976           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

2.6 Preparation for Presorted Rates         weight of the piece, without regard to      5.0    LIBRARY MAIL
   Presorted Bound Printed Matter must      zone. The rate categories are as follows:
                                              a. Single-Piece Rate. The single-piece    5.1 Qualification
meet the basic standards in 2.1 through
2.5 and the applicable preparation          rate applies to Special Standard Mail          Library Mail is Standard Mail matter
standards in M630. Mailings may             not mailed at a 5-digit or BMC rate.        meeting the standards in E611, E613,
                                              b. Presorted 5-Digit Rate. The 5-digit    and those below. Library Mail rates are
contain nonidentical-weight pieces only
                                            rate applies to Presorted Special           based on the weight of the piece,
if the correct postage is affixed to each
                                            Standard Mail mailings of at least 500      without regard to zone. The basic rate
piece or if the RCSC serving the post
                                            pieces and meeting the other                category applies to all Library Mail.
office of mailing has authorized
                                            requirements of 4.0 and that are            [Renumber former E620.5.2 through
payment of postage by permit imprint
                                            prepared and presorted to 5-digit           E620.5.7 as E630.5.2 through E630.5.7.]
under P710, P720, or P730 or M630.8.
                                            destination ZIP Codes as specified in       [Insert new 5.8 as follows:]
Each mailing must contain 300 or more
                                            M630 or M041 and M045.
pieces of presorted Bound Printed             c. Presorted BMC Rate. The BMC rate       5.8 Barcoded Discount
Matter. Insurance, special handling, and    applies to Presorted Special Standard
COD services may be used, but selective                                                    The barcoded discount applies to
                                            Mail mailings of at least 500 pieces and    machinable parcels (C050) of Library
use of these services for individual        meeting the other requirements of 4.0
parcels must be approved by the RCSC.                                                   Mail bearing a correct, readable barcode
                                            and that are prepared and presorted to      under C850 for the ZIP Code shown in
[Renumber former E630.3.2 as 2.7.]
                                            destination bulk mail centers as            the delivery address and that are part of
2.7 Additional Standards for Carrier        specified in M630 or M041 and M045.         a mailing of at least 50 Library Mail
Route Rates                                 [Renumber former E620.4.2 as E630.3.2.]     pieces.
  Carrier route Bound Printed Matter is     3.2   Qualified Items                       [Insert new 6.0 to read as follows:]
subject to these additional standards:
                                            *    *   *    *     *                       6.0 BULK PARCEL POST
  a. Each mailing must contain 300 or
                                            [Renumber former E620.4.3 as E630.3.3.]
more pieces sorted under M630 into                                                      [Reserved]
groups of at least 10 pieces, 20 pounds,    3.3   Loose Enclosures                      [Revise the title of E640 and the first
or 1,000 cubic inches each for the same     *    *   *    *     *                       sentence of E640.1.1 to read as follows:]
carrier route, rural route, highway         [Renumber former E620.4.4 as E630.3.4.]
contract route, post office box section,                                                E640 Automation Standard Mail (A)
or general delivery unit.                   3.4   Enclosures in Books                   Rates
  b. Residual pieces (not sorted as         *     *     *    *     *                    1.0 REGULAR AND NONPROFIT
described in 2.7a) do not count toward      [Insert current E630.4.0. Amend 4.3 by      RATES
the minimum specified in 2.7a, are          revising the second sentence and add
ineligible for the carrier route Bound      new E630.4.7 to read as follows:]           1.1    All Pieces
Printed matter rates, and must have                                                       All pieces in an automation rate
postage paid at the appropriate             4.0 PRESORTED SPECIAL
                                                                                        Regular or Nonprofit Standard Mail (A)
                                            STANDARD MAIL
presorted Bound Printed Matter rates.                                                   mailing must: * * *
Residual pieces may be included in a        *     *    *     *      *                   *    *     *     *    *
carrier route Bound Printer Matter rate     4.3 One Presort Level
mailing and be endorsed ‘‘Carrier Route                                                 E650 Destination Entry
Presort’’ or ‘‘CAR–RT SORT.’’ The             A Presorted Special Standard Mail         *      *      *      *   *
number of residual pieces to any single     rate mailing receives only one level of
5-digit ZIP Code area may not exceed        presort rate. The mailer may, however,      E652       Parcel Post
5% of the total qualifying carrier route    prepare two separate mailings in order
                                                                                        1.0 BASIC STANDARDS
pieces addressed to that 5-digit area.      to use both levels of presort rates and
Residual pieces must be separated from      claim them on the same postage              [Amend 1.1 through 1.4 to add
the pieces that qualify for the carrier     statement. Pieces that do not qualify for   information on DSCF and DDU
route rate and must be prepared under       a presort rate must be presented            destination entry rates to read as
M630.                                       separately from any presorted rate          follows:]
  c. Subject to A930, the mailer must       mailings, but may be claimed on the         1.1    Definitions
apply carrier route codes to mailings       same postage statement as a 5-digit rate
                                            and BMC presort rate mailing.                 Destination entry discounts apply to
using CASS-certified software and the
                                            *     *     *    *     *                    Parcel Post mailings prepared as
current USPS Carrier Route Information
                                                                                        specified in M041, M045, and M630 and
System (CRIS) scheme or another AIS         4.7 Barcoded Discount                       addressed for delivery within the
product containing carrier route
                                              The barcoded discount applies to          service area of a destination BMC (or
information. The carrier route
                                            machinable parcels (C050) mailed at         auxiliary service facility), sectional
information must be updated within 90
                                            single-piece rates and Presorted Special    center facility (SCF), or delivery unit
days before the mailing date.
[Renumber former E620.4.0 as E630.3.0.]     Standard Mail BMC rates that bear a         (DU) where they are deposited by the
                                            correct, readable barcode under C850 for    mailer. For this standard, the following
3.0 SPECIAL STANDARD MAIL                   the ZIP Code shown in the delivery          destination facility definitions apply:
[Renumber former E620.4.1 as E630.3.1       address, and that are part of a mailing       a. A destination bulk mail center
and add rate categories as follows:]        of at least 50 pieces of Special Standard   (DBMC) includes all bulk mail centers
                                            Mail. The discount does not apply to        (BMCs) and auxiliary service facilities
3.1 Qualification                           pieces mailed at the Presorted Special      (ASFs) under L602, and designated
  Special Standard Mail is Standard         Standard Mail 5-digit rates.                sectional center facilities (SCFs) under
Mail matter meeting the standards in        [Renumber former E620.5.0 and 5.1 as        4.0.
E611, E613, and those below. Special        E630.5.0 and E630.5.1 to read as              b. A destination sectional center
Standard Mail rates are based on the        follows:]                                   facility (DSCF) includes all facilities
                 Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                           37977

listed under L005. Mail that is prepared       delivery within the ZIP Code service          entered and to determine whether that
on pallets for 5-digit ZIP Codes listed in     area of that SCF facility under L005 and      facility can handle pallets, unless the 5-
Exhibit 5.0 must be entered at the BMC         prepared in accordance with M041 and          digit ZIP Code is listed in Exhibit 6.0 or
shown in the exhibit instead of at the         M045, and/or M630. For 5-digit ZIP            Exhibit 7.0. For ZIP Codes in Exhibits
SCF serving the 5-digit ZIP Codes of the       Code areas listed under Exhibit 5.0, mail     6.0 and 7.0 use the name of the facility
delivery addresses appearing on                prepared on pallets must be entered at        associated with the 5-digit ZIP Code on
mailpieces unless an exception has been        the corresponding BMC facility shown          the respective exhibit as the facility at
granted under 1.3e.                            in that Exhibit (not at the SCF) unless       which DDU mail must be entered for
   c. A destination delivery unit (DDU)        an exception is requested 15 days in          that 5-digit ZIP Code. This facility name
is a facility that delivers to the addresses   advance of the mailing in writing and         should be used along with the Drop
appearing on the deposited pieces in a         granted by the Area Manager,                  Shipment Product to determine if that
destination entry rate Parcel Post             Operations Support having jurisdiction        facility can handle pallets. If a DDU
mailing. Refer to the Drop Shipment            over the BMC and SCF. Exceptions, if          facility cannot handle pallets, and a
Product maintained by the National             granted, will be for a limited time.          mailer transports mail to the DDU
Customer Support Center (NCSC) (see            Mailers must not prepare mail on pallets      facility on pallets, the driver will have
G043) to determine the location of a 5-        (including pallet boxes on pallets) for       to unload the pallets into a container
digit delivery facility. There is a charge     the DSCF rate if the 5-digit delivery         specified by the delivery unit.
for the Drop Shipment Product. When            facility is unable to handle pallets. Refer
the Drop Shipment Product shows that                                                         1.4 Postage Payment
                                               to the Drop Shipment Product
mail for a single 5-digit ZIP Code area        maintained by the National Customer             Postage payment for DBMC, DSCF,
is delivered out of more than one postal       Support Center (NCSC) (see G043) to           and DDU rate mail is subject to the same
facility, use the facility from which the      determine which 5-digit delivery              standards that apply generally to
majority of city carrier routes are            facilities can handle pallets (including      Standard Mail (B). Except for plant-
delivered as the facility at which the         pallet boxes on pallets). There is a          verified drop shipments (see P750) or
DDU mail must be entered unless the 5-         charge for the Drop Shipment Product.         metered mail drop shipment (see D072),
digit ZIP Code is listed in Exhibit 6.0 or     When the Drop Shipment Product                the mailer must have a meter license or
Exhibit 7.0.                                   shows that mail for a single 5-digit ZIP      permit imprint authorization at the
                                               Code area is delivered out of more than       destination facility parent post office for
1.2 General                                                                                  mailings deposited for entry at a DBMC
                                               one postal facility, use the facility where
  A destination entry mailing is a Parcel      the majority of city carrier routes are       or ASF, at a destination sectional center
Post mailing that:                             located for purposes of determining if        facility, or at the parent post office of a
  a. May be bedloaded, on pallets, or in       the delivery facility can handle pallets,     destination delivery unit. Postage and
pallet boxes on pallets, sacks, or other       unless the 5-digit ZIP Code is listed in      fees (under E630) are paid to the post
authorized containers as specified in 2.0      Exhibit 6.0 or Exhibit 7.0. For ZIP Codes     office that verifies the mailings. The
through 5.0, depending on the facility at      in Exhibits 6.0 and 7.0 use the name of       mailer must ensure that Form 8125
which the pieces are deposited and;            the facility associated with the 5-digit      accompanies all plant-verified drop
  b. Is not plant-loaded.                      ZIP Code on the respective exhibit along      shipments.
1.3 DBMC, DSCF, and DDU Rates                  with the Drop Shipment Product to             [Rename 1.5 to read as follows:]
                                               determine if pallets may be prepared for      1.5 BMC as Agent
  For DBMC, DSCF, or DDU rates,
                                               one of those 5-digit areas.
pieces must meet the applicable                                                                The DBMC may act as acceptance
standards in 1.0 through 5.0 and meet             f. For destination delivery unit (DDU)     agent only for its parent post office (see
the following criteria:                        rates, be part of a Parcel Post mailing       Exhibit 1.5) and only if authorized by
  a. Be part of a single mailing of 50 or      prepared in accordance with M041 and          Form 4410 for each mailer depositing
more pieces that are eligible for and          M045 and/or M630 and deposited at a           DBMC entry rate mail.
claimed at any Parcel Post rate or rates.      designated destination delivery unit that     [Delete 1.6.]
  b. Be deposited at a destination BMC         delivers parcels to the addresses
(DBMC) or auxiliary service facility, or       appearing on the deposited pieces.            2.0 PREPARATION
other equivalent facility; destination         There is no required minimum number           [Amend 2.0 to include new destination
sectional center (DSCF); or destination        of pieces that must be deposited for the      entry rates as follows:]
delivery unit (DDU) as applicable for the      DDU rate and no specific preparation
                                               requirements; however, they must be           2.1 Bedloaded Parcels
rate claimed and as specified by the
USPS.                                          part of a mailing of at least 50 Parcel       [Revise 2.1 to limit bedloaded
  c. Be addressed for delivery within          Post rate pieces and must be separated        destination entry mailings to BMCs and
the ZIP Code ranges that the applicable        by 5-digit ZIP Codes. Refer to the Drop       DDUs as follows:]
entry facility serves.                         Shipment Product maintained by the               A mailer may present bedloaded
  d. For destination BMC (DBMC) rates,         National Customer Support Center              DBMC parcels if the mailer’s vehicle has
be part of a Parcel Post mailing that is       (NCSC) (see G043) to determine the            a road-to-bed height of 50 (±2) inches.
deposited at a BMC or ASF under L602           location of the 5-digit delivery facility     If applicable, the mail to be entered at
or other designated facility under 4.0,        and whether it can handle pallets             different destinations must be separated
addressed for delivery within the ZIP          (including pallet boxes on pallets).          to prevent mixing of mailings for
Code range of that facility and prepared       There is a charge for the Drop Shipment       deposit at different destinations. DBMC
in accordance with M041 and M045 or            Product. When the Drop Shipment               rate mailings may be bedloaded for
M630.                                          Product shows that mail for a single 5-       deposit at BMCs/ASFs, and DDU rate
  e. For destination sectional center          digit ZIP Code area is delivered out of       mailings may be bedloaded for deposit
facility (DSCF) rates, be part of a Parcel     more than one postal facility, use the        at DDUs. Refer to the Drop Shipment
Post mailing deposited at a designated         facility from which the majority of city      Product available from the National
SCF facility under L005 (or at a BMC           carrier routes are delivered as the           Customer Support Center (NCSC) (see
under Exhibit 5.0); addressed for              facility at which the DDU mail must be        G043) to determine dock requirements
37978           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

for a DDU facility. (There is a charge for   destination facility. The mailer may          entry rate mail at BMCs, ASFs, and
this information.)                           request use of a numbered PVDS band           SCFs must be scheduled through the
                                             seal to secure mailer vehicles                appropriate appointment control center
2.2   Containers
                                             transporting plant-verified drop              at least a day in advance. Same day
[Reorganize and revise 2.2 to include        shipments.                                    appointments may be granted by a
DSCF and DDU mailings and delete use                                                       control center on the basis of a
of BMC over-the-road containers for the      3.2 Presentation
                                                                                           telephone request. All appointments for
DBMC rate as follows:]                       [Revise to include requirements for           BMC loads must be scheduled by the
   DBMC (if not bedloaded), DDU rate         DSCF and DDU destination entry                appropriate BMC control center.
mailings (if not bedloaded), and all         mailings as follows:]                         Appointments for SCFs and ASFs must
DSCF mailings must be prepared as               Destination entry rate mailings must       be scheduled through the appropriate
follows:                                     be verified under a plant-verified drop       district control center. Appointments
   a. Machinable parcels for which a         shipment authorization by a detached          may be made up to thirty (30) calendar
DBMC, DSCF, or DDU rate is claimed           mail unit (DMU) in the mailer’s plant or      days prior to a desired appointment
must be sacked under M630 or prepared        at the origin post office business mail       date. Mailers must comply with the
on pallets under M041 and M045.              entry unit (BMEU) serving the mailer’s        scheduled mail deposit time and
   b. For DBMC rate mail,                    plant. They also may be deposited for         location. The mailer must cancel any
nonmachinable parcels that each weigh        verification at a business mail entry unit    appointment by notifying the
35 pounds or less must be sacked under       located at a destination BMC,                 appropriate control center at least a day
M630 if the parcels do not contain           destination sectional center facility, or     in advance of a scheduled appointment
perishables and the size of the parcels      other designated destination postal           time.
allows a sack to hold at least two pieces.   facility. Only plant-verified drop
                                                                                              b. Electronic appointments may be
DBMC rate nonmachinable parcels that         shipments may be deposited at a
                                                                                           made by mailers/agents using a USPS-
cannot be sacked in this manner or that      destination delivery unit not co-located
                                                                                           issued computer log-on ID. Electronic
weigh more than 35 pounds must be            with a post office or other postal facility
                                                                                           appointments or cancellations must be
transported as outside (unsacked)            having a business mail entry unit. When
                                                                                           made at least 12 hours prior to the
pieces. If authorized in advance by the      presented to the USPS, destination entry
                                                                                           desired time and date. All information
USPS, DBMC rate nonmachinable                mailings must meet the following
                                                                                           required by the USPS appointment
parcels may be palletized.                   requirements:
                                                a. Separation by zone for DBMC rate        system regarding a mailing must be
   c. DSCF rate mail, if sacked under
                                             mailings is required only for permit          furnished.
M630, must contain at least 7 pieces per
sack or, if the sack is overflow from a      imprint mailings of identical-weight             c. For deposit of DDU mailings, an
5-digit sack that contains at least 7        pieces that are not mailed using a            appointment must be made by
pieces it may contain less. DSCF rate        postage payment system under P710,            contacting the DDU at least 24 hours in
mail, if sacked under M045 as overflow       P720, or P730, or not mailed under            advance. If the appointment must be
from a 5-digit pallet that meets the         M630.8.0.                                     canceled, a mailer must notify the DDU
applicable pallet minimum, may                  b. Each mailing must be separated          at least a day in advance of a scheduled
contain any number of pieces.                from other mailings, and destination          appointment. Mailers desiring
Machinable and nonmachinable pieces          entry rate mailings for deposit at one        electronic confirmation of DDU mail
may be included in the same sack.            destination postal facility must be           entry also must schedule the
   d. For the DSCF rate, 5-digit sacks       separated from mailings for deposit at        appointment through the district control
may be bedloaded or they may be              other facilities.                             center. Recurring (standing)
placed on SCF pallets that are labeled          c. Mail must be separated from freight     appointments will be allowed if
and otherwise prepared under M045.           transported on the same vehicle.              shipment frequency is weekly or more
   e. For DSCF rate and DDU rate mail,          d. Each piece of DBMC, DSCF, or            often.
nonmachinable parcels may be                 DDU rate Parcel Post must be marked as           d. When Periodicals are transported
palletized (including pallet boxes on        specified in M012 and M630.                   together with Standard Mail (A) or (B)
pallets). Nonmachinable parcels may be          e. The mailer must ensure that Form
                                                                                           as a mixed load (E250), an appointment
combined with machinable parcels on          8125 accompanies all plant-verified
                                                                                           must be obtained for deposit at a
5-digit pallets (including pallet boxes on   drop shipments.
                                                                                           destination entry facility.
pallets) claimed at DSCF or DDU rates           f. If Periodicals mail is on the same
                                             vehicle as Standard Mail (B) the              *      *     *    *     *
under M041 and M045.
   f. For DDU rate mail, there are no        Periodicals mail should be loaded in the      3.7 Deposit Conditions
minimums for sacks, pallets, or pallet       tail of the vehicle.
boxes on pallets. DDU rate mail must be      [Rename the title of 3.3 to read as           [Revise 3.7a to clarify that rescheduling
separated by 5-digit ZIP Code (even if       follows:]                                     is permitted for refused mailings as
bedloaded) and, if placed in sacks or on                                                   follows:]
                                             3.3 BMC as Agent
pallets (including pallet boxes on                                                            Deposit of mail also is subject to these
pallets), it must be properly labeled to       The DBMC may verify and accept              conditions:
the 5-digit ZIP Code. Machinable and         mail if authorized by Form 4410 to act
                                             as agent for the parent post office where        a. Destination facilities may refuse
nonmachinable pieces may be included                                                       mailings that are unscheduled or late
in the same sack or on the same pallet       the mailer’s account or license is held.
                                                                                           (i.e., if vehicles arrive more than 2 hours
(including pallet boxes).                    3.4 Appointments                              after the scheduled appointment at
3.0   DEPOSIT                                [Revise 3.4 to change and update              ASFs, BMCs, or SCFs and more than 20
                                             appointment procedures as follows:]           minutes late at delivery units). If a
3.1   Freight                                  a. Except for local mailers under 3.5       mailing is refused, a mailer is permitted
  Drop shipments are freight until           and mailings of perishable commodities,       to make a new appointment.
deposited and accepted as mail at the        appointments for deposit of destination       *       *     *     *     *
                         Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                                      37979

3.8 Vehicle Unloading                                          driver must unload the pallets into a           to the manager, customer service
[Revise 3.8 to include DSCF and DDU                            container specified by the delivery unit.       (district), responsible for the destination
rate mail as follows:]                                         The driver may be required to place             postal facility.
  Unloading of destination entry                               bedloaded pieces in containers provided
                                                                                                               3.11 Documentation
mailings is subject to these conditions:                       by the delivery unit in order to maintain
  a. Properly prepared containerized                           separation by 5-digit ZIP Codes or to           [Revise 3.11 to include DSCF and DDU
loads (e.g., pallets) are unloaded by the                      place containerized mail so as to               mailings as follows:]
USPS at BMCs, ASFs, and SCFs. The                              maintain the separation of 5-digit ZIP            A postage statement must accompany
USPS does not unload or permit the                             Codes.                                          each destination entry rate mailing. Any
mailer (or mailer agent) to unload                                d. When driver unloading is required,        other documentation must be submitted
palletized loads that are unstable or                          the driver or assistant must stay with          as required by the standards for the rate
severely leaning or that have otherwise                        and continue to unload the vehicle once         claimed or the postage payment method
not maintained their integrity in transit.                     at the dock.                                    used.
  b. The driver must unload bedloaded                             e. The driver must remove the vehicle
                                                                                                               *     *     *    *     *
shipments within 8 hours of arrival at                         from USPS property after unloading.
BMCs, ASFs, and SCFs. Combination                              The driver and assistant are not                [Add 5.0 as follows to provide for
containerized and bedloaded drop                               permitted in USPS facilities except the         deposit of some DSCF mail at a BMC:]
shipment mailings are classified as                            dock and designated driver rest area.           5.0 DSCF MAIL ENTERED AT A
bedloaded shipments for unload times.                                                                          DESIGNATED BMC
                                                               3.9    Charges
The USPS may assist in unloading.
  c. At delivery units, the driver must                        [Revise 3.9 to include all destination             DSCF rate mail prepared on pallets
unload all mail, whether bedloaded,                            rate mailings as follows:]                      (including pallet boxes on pallets) that
sacked, or palletized (including pallet                          The USPS is not responsible for               is for a 5-digit ZIP Code listed in Exhibit
boxes on pallets) within 1 hour of                             demurrage or detention charges                  5.0 must be entered at the
arrival. If pallets (including pallet boxes                    incurred by a mailer who presents               corresponding BMC facility listed on
on pallets) are stacked, the driver is                         destination rate mailings.                      that exhibit instead of at the DSCF
required to unload, unstack, and                                                                               unless an exception has been granted
unstrap them. If a DDU facility cannot                         3.10    Appeals                                 under 1.3e. Sacked DSCF rate mail for
handle pallets, and a mailer transports                          Mailers who believe that they are             the 5-digit ZIP Codes in Exhibit 5.0
mail to the DDU facility on pallets, the                       denied equitable treatment may appeal           must be entered at the DSCF.

                                                     EXHIBIT E652.5.0, BMC DEPOSIT OF DSCF RATE PALLETS
                     BMC                                                                      Destination ZIP code

ATLANTA ........................................     30006–08, 30, 32–37, 60–69, 71, 80–86, 88–90.
                                                     30305–07, 19, 24, 28–29, 38, 40–42, 45–46, 59, 62–63, 66, 76.
                                                     31101.
                                                     39901.
CHICAGO ........................................     53140–44.
                                                     53401–08.
                                                     60016–17, 19, 25, 53, 56, 68, 70, 76–77.
                                                     60103, 05, 07, 20–23, 26, 31, 53–54, 60–65, 68, 76, 79, 87, 89, 92–95.
                                                     60301–04, 06–99.
                                                     60409, 11–12, 15, 22, 25, 30–33, 35–36, 38–41, 46, 53–58, 62, 64–65, 67, 73, 77–78, 82, 90.
                                                     60504–07, 15–17, 21–23, 25–26, 40, 42, 63–64, 66–68, 98.
                                                     60601, 05, 08–60, 67, 81, 90, 93–94.
                                                     60714.
                                                     60803–05.
CINCINNATI ....................................      None.
DALLAS ...........................................   None.
DENVER .........................................     69190.
                                                     80001–19, 32, 40–42, 44, 46–47.
                                                     80110–15, 20–29, 50–56, 60–63, 65–67.
                                                     80215, 21–22, 24, 26–29, 31–33, 35–37, 51.
                                                     80401–19.
                                                     80521–28, 53–54.
                                                     80631–39.
DES MOINES ..................................        50000–50399, 50900–50999.
DETROIT .........................................    48007, 15, 21, 25–26, 34,37, 42–46, 66–73, 75–76, 80–84, 86, 89–93,98–99.
                                                     48103–04, 06–09, 11–13, 20–28, 30, 34, 41, 50–54, 61–62, 70, 74, 80, 82–88, 92, 95, 97–98.
                                                     48192, 95, 97–98.
                                                     48204, 20–21, 27–28, 35.
                                                     48310–18, 40–43, 97.
GREENSBORO ...............................           27101–02.
                                                     27408–10.
                                                     27514–16.
                                                     27701.
37980                   Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

                                       EXHIBIT E652.5.0, BMC DEPOSIT OF DSCF RATE PALLETS—Continued
                     BMC                                                                             Destination ZIP code

JACKSONVILLE ..............................         31520–25, 27.
                                                    32065, 67, 73, 84–86, 91–92, 95.
                                                    32173–76.
                                                    32205, 07, 10–11, 16, 20–22, 24–25, 30, 36, 38–39, 44–45, 47, 54, 77.
                                                    32901–12, 19, 22–32, 34–37, 40–41, 51–56, 58–69, 76–78.
                                                    33427–29, 31–34, 60–67, 81, 86–87, 96–98.
                                                    33755–67, 70–79.
                                                    33880–85.
                                                    34101–06, 08–10, 12–14, 16–17, 19–20.
                                                    34470–82.
                                                    34945–51, 54, 79–82, 94–97.
KANSAS CITY ................................        64013–15, 50–51, 55–56, 58.
                                                    64116–19, 51, 53–54, 57–61, 63–64, 67, 88, 90.
                                                    66002, 44–49.
LOS ANGELES ...............................         90220–23, 40–42, 80.
MEMPHIS ........................................    38018, 88.
                                                    38115, 18, 25, 33–35, 38–39, 41, 75, 81, 83–84, 88, 93, 95.
                                                    38614.
                                                    38732.
MINNEAPOLIS/ST. PAUL ...............                None.
NEW JERSEY .................................        None.
PHILADELPHIA ...............................        19001–04, 06–10, 12–18, 20–23, 25–26, 28–41, 43–44, 46–50, 52–53, 61, 63–67, 70, 72–76, 78–91, 93–
                                                      96.
                                                    19111, 14–16, 19–20, 24, 28, 34–37, 40, 44, 49, 52, 54–55, 60.
PITTSBURGH .................................        None.
ST. LOUIS .......................................   62002, 40.
                                                    62220–23, 26.
                                                    63005–06, 11, 17, 21–22, 24, 31–34, 42–45, 74.
                                                    63104–41, 43–44, 46–47, 51, 57–58.
                                                    63301–04.
SAN FRANCISCO ...........................           93921–23.
                                                    94002–03, 10–12, 22–28, 30, 35, 39–43, 59, 61–65, 70, 86–89.
                                                    94401–99.
                                                    94504, 06, 08, 11–24, 26–29, 33, 35–46, 48, 55–56, 58–63, 67, 70–71, 73–81, 83–85, 89–99.
SEATTLE ........................................    98002–04, 23, 31, 35, 63–64, 92–93.
SPRINGFIELD ................................        None.
WASHINGTON ................................         None.



6.0 DELIVERY FACILITY                                        Product. At a future date this list will be                      ZIP Code                     Facility name
EXCEPTIONS TO THE ‘‘MAJORITY OF                              available in the Drop Shipment Product.
CITY CARRIERS’’ RULE                                                                                                  KENTUCKY:
                                                                      ZIP Code                    Facility name         40022 .....................   Simpsonville.
  For ZIP Codes in Exhibit 6.0 use the                                                                                  40763 .....................   Williamsburg.
name of the facility associated with the                      ALABAMA:                                                  41730 .....................   Hyden.
5-digit ZIP Code in that exhibit as the                         36130 .....................   Montgomery.               42338 .....................   Hartford.
facility at which DDU rate mail for that                      ALASKA:                                                 LOUISIANA:
5-digit ZIP Code must be entered, and                           99701 .....................   Main Office.              70503 .....................   Oil Center.
                                                                99709 .....................   Main Office.              71201 .....................   Monroe.
for both DDU and DSCF mail, to                                  99801 .....................   Mendenhall.             MAINE:
determine whether that 5-digit facility                       CALIFORNIA:                                               04043 .....................   Kennebunk.
can handle pallets. See 1.1 and 1.3.                            91941 .....................   La Mesa.                  04345 .....................   Gardiner.
                                                                92056 .....................   Oceanside.                04402 .....................   Eastern Maine Carrier
Exhibit E652.6.0, Delivery Facility
                                                                92122 .....................   Universal City Annex.                                     Annex.
Exceptions to the ‘‘Majority of City                            92623 .....................   Harvest Station.          04769 .....................   Presque Isle.
Carriers’’ Rule                                                 92693 .....................   San Juan Capistrano.      04841 .....................   Rockland.
                                                                94087 .....................   Sunnyvale.              MASSACHUSETTS:
   This listing identifies 5-digit ZIP                          94304 .....................   Palo Alto.                02584 .....................   Nantucket.
Codes that are exceptions to the                              FLORIDA:                                                MINNESOTA:
‘‘majority of city carriers rule’’ which is                     34743 .....................   Buena Ventura             55369 .....................   Maple Grove.
used to determine the Standard (B)                                                              Lakes.                  55378 .....................   Burnsville.
parcel facility for a 5-digit ZIP Code in                       34747 .....................   Celebration.              56387 .....................   Waite Park.
instances of where a ZIP Code is                              GEORGIA:                                                MISSOURI:
delivered by multiple facilities. The                           30811 .....................   Keysville.                64113 .....................   Country Club.
name of the primary facility for parcel                         31704 .....................   Albany.                 MONTANA:
                                                              IOWA:                                                     59106 .....................   Billings.
delivery is listed beside each 5-digit ZIP                      52401 .....................   Cedar Rapids.           NEW HAMPSHIRE:
Code. Additional information about the                        KANSAS:                                                   03224 .....................   Tilton.
facility including drop ship address and                        66044 .....................   Jayhawk.                NEW YORK:
whether the facility can handle a pallet                        66226 .....................   Monticello.               14304 .....................   Niagara Falls.
is included in the Drop Shipment                                66619 .....................   Hicrest.                NORTH CAROLINA:
                          Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                                               37981

         ZIP Code                        Facility name                  ZIP Code                    Facility name        5-digit ZIP Code in that exhibit as the
                                                                                                                         facility at which DDU rate mail for that
 27706 .....................       Durham.                        22405 .....................   Fredericksburg.          5-digit ZIP Code must be entered, and
 28018 .....................       Forest City.                   23433 .....................   Driver.                  for both DDU and DSCF mail, to
 28309 .....................       Lafayette.                     23521 .....................   LC Page.
OHIO:                                                                                                                    determine whether that 5-digit facility
                                                                 WASHINGTON:
 45013 .....................       Hamilton.                      98203 .....................   Claremont.               can handle pallets. See 1.1 and 1.3.
 45459 .....................       Centerville.                   98324 .....................   Carbonado.
PENNSYLVANIA:
                                                                                                                         Exhibit E652.7.0, Delivery Facilities
                                                                  98375 .....................   South Hill Annex.
 18073 .....................       Red Hill.                      98387 .....................   Spanaway.
                                                                                                                         Different than those in the Drop
 18241 .....................       Nuremberg.                     98687 .....................   East Vancouver DDU.      Shipment Product
 19026 .....................       Pilgrim Gardens.              WEST VIRGINIA:
 19136 .....................       Holmesburg Carrier             25801 .....................   Beckley.                    Parcel Post mailings for the ZIP Codes
                                     Annex.                       26302 .....................   Eastpointe.              shown must be deposited at the
RHODE ISLAND:                                                     26330 .....................   Eastpointe.              facilities listed in order to qualify for
  02842 .....................      Middleton.                    WISCONSIN:                                              destination delivery unit rates. The
SOUTH DAKOTA:                                                     53703 .....................   Madison.
  57402 .....................      Aberdeen.                                                                             listing identifies 5-digit ZIP codes and
TENNESSEE:                                                                                                               facilities that are different from the ones
  37224 .....................      South.                        7.0 DELIVERY FACILITIES                                 indicated in the Drop Shipment Product
TEXAS:                                                           DIFFERENT THAN THOSE IN THE                             for letters and flats. At a future date this
  75501 .....................      Texarkana.                    DROP SHIPMENT PRODUCT                                   information will be available in the
  75903 .....................      Lufkin.
                                                                   For ZIP Codes in Exhibit 7.0 use the                  Drop Shipment Product.
VIRGINIA:
  22320 .....................      Alexandria.                   name of the facility associated with the

             ZIP codes served                                                                    Destination delivery unit location

ALASKA:
    99702 .......................................      Fairbanks—5400 Mail Trail, Fairbanks, AK 99709–9998.
CALIFORNIA:
    90223 .......................................      Compton—701 S. Santa Fe Avenue, Compton, CA 90221–9998.
    92677 .......................................      Laguna Niguel—29911 Niguel Road, Laguna Beach, CA 92607–9998.
    92684 .......................................      Westminster—15080 Goldenwest Circle, Westminister, CA 92685–9998.
FLORIDA:
    34278 .......................................      Manasota P&DC—850 Tallevast Road, Sarasota, Florida 34243–3249.
MASSACHUSETTS:
    02113, 14, 29, 99 .....................            Boston P&DC—25 Dorchester Avenue, Boston, MA 02205–9998.
    02215.                                             Incoming Mail Center—307 Beacham Street,
    02144–45 .................................         Chelsea, MA 02150–9998.
MISSISSIPPI:
39563 ..............................................   Pascagoula—911 Jackson Avenue, Pascagoula, MS 39567–9998.
MINNESOTA:
    55102 .......................................      Saint Paul—180 Kellogg Blvd. E., Saint Paul, MN 55101–9997.
MONTANA:
    59401, 04–05, 14 .....................             Great Falls Annex—1409 14th Street SW, Great Falls, MT 59404–9998.
NEW YORK:
    10001, 18, 26, 27, 29, 32–35,                      New York City—James A. Farley Building, 441 8th Avenue, New York, NY 10001–9998.
      40, 43, 60, 81, 87, 90, 95,
      98, 99.
    10115–23, 99.
    10017, 21, 22, 28, 30, 31, 37,                     Bronx—East Side Parcel Post Annex, 500 East 132nd Street, Bronx, NY 10454–4619.
      39, 44, 55.
    10128, 51–55, 62, 65–78.
    10002–07, 09–14, 16, 19, 20,                       New York—Central Parcel Post Facility, 341 9th Avenue, New York, NY 10199–9991.
      23–25, 36, 38, 41.
    10103–07, 10, 49, 58.
    10210, 56–60, 65, 70, 71, 79,
      80–82, 85, 86, 92
    10008, 15, 45–48, 80 ...............               New York—Church Street Station, 90 Church Street, New York, NY 10007–9998.
    10203, 49, 61, 67.
    10111, 12, 29, 85 .....................            New York—Times Square Station, 340 W. 42nd Street, New York, NY 10036–9998.
    10461 .......................................      Soundview—1687 Gleason Avenue, Bronx, NY 10472–9998.
    10463 .......................................      Mott Haven—517 E. 139th Street, Bronx, NY 10454–9998.
    14901 .......................................      Elmira P&DC—1580 Sullivan Street, Elmira, NY 14901–9997.
PENNSYLVANIA:
    15131–35 .................................         McKeesport—850 Walnut Street, McKeesport, PA 15134.
    15122 .......................................      West Mifflin—500 Regis Avenue, Pittsburgh, PA 15236–9998.
    15201 .......................................      Bloomfield—5182 Liberty Avenue, Pittsburgh, PA 15224–9998.
    15223 .......................................      Glenshaw—1541 Butler Park Road, Pittsburgh, PA 15116–9998.
    15225 .......................................      Woods Run Annex—2840 New Beaver Avenue, Pittsburgh, PA 15233–9998.
    15240 .......................................      Oakland—347 S. Bouquet Street, Pittsburgh, PA 15213–9998.
    15244 .......................................      Greentree—770 Trumbull Drive, Pittsburgh, PA 15220.
    17735 .......................................      Canton—55 Troy Street, Canton, PA 17724–9998.
37982                  Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

E670        Nonprofit Standard Mail                    F   Forwarding and Related Services               Class Mail and Priority Mail that bear
*       *        *     *      *                        F000       Basic Services                         Standard Mail (A) markings and
                                                                                                         endorsements as permitted in E620.1.3
9.0 MAILING WHILE APPLICATION                          F010       Basic Information                      and P100, receive forwarding, return,
PENDING                                                *      *       *    *       *                     and address correction services for
*       *        *     *      *                                                                          Standard Mail (A) under 5.3.
                                                       3.0 DIRECTORY SERVICE
                                                                                                         *     *    *    *     *
9.2     Postage Record                                 [Amend 3.0d by removing ‘‘or Single-
                                                       Piece Standard Mail’’ to read as                  5.2   Periodicals
[Amend 9.2 by removing ‘‘or Single-
Piece Standard Mail’’ in the last                      follows:]                                         [Amend 5.2e and 5.2g to read as
sentence to read as follows:]                             USPS letter carrier offices give               follows:]
                                                       directory service to the types of mail               Undeliverable Periodicals
   While an application is pending,                    listed below that have an insufficient
postage must be paid at the applicable                                                                   publications (including publications
                                                       address or cannot be delivered at the             pending Periodicals authorization) are
First-Class Mail or Priority Mail rates, or            address given (the USPS does not
at the following Standard Mail (A) rates:                                                                treated as described in the chart below
                                                       compile a directory of any kind):                 and under these conditions:
regular Enhanced Carrier Route; regular
automation, or regular Presorted. The                  *      *    *     *     *
                                                                                                         *      *    *     *     *
                                                          d. Parcels mailed at any Standard
USPS records the difference between                                                                         e. The publisher may request the
                                                       Mail (B) rate or endorsed by the mailer.
postage paid at the regular Standard                                                                     return of copies of undelivered
Mail (A) rates (Enhanced Carrier Route,                *      *    *     *     *
                                                                                                         Periodicals publications by printing the
automation and Presorted) and the                      5.0 CLASS TREATMENT FOR                           endorsement ‘‘Address Service
postage that would have been paid at                   ANCILLARY SERVICES                                Requested’’ on the envelopes or
the Nonprofit Standard Mail rates. No                                                                    wrappers, or on one of the outside
record is kept if postage is paid at First-            5.1 Priority Mail and First-Class Mail
                                                                                                         covers of unwrapped copies,
Class Mail or Priority Mail rates.                     [Insert new sentence before the chart in          immediately preceded by the sender’s
                                                       5.1 to read as follows:]                          name, address, and ZIP+4 or 5-digit ZIP
9.3     Refund                                            Undeliverable Priority Mail and First-         Code. The per piece rate charged for
[Amend 9.3b by removing ‘‘or Single-                   Class Mail (including stamped cards               return is the appropriate single-piece
Piece Standard Mail’’ to read as                       and postcards) are treated as described           First-Class Mail or Priority Mail rate as
follows:]                                              in the chart below. During months 13              applicable for the weight of the piece.
   If an authorization to mail at                      through 18, pieces are returned to the            When the address correction is provided
Nonprofit Standard Mail rates is issued,               sender with an on-piece address                   incidental to the return of the piece,
the mailer may be refunded the postage                 correction at no charge. Forwarding               there is no charge for the correction.
paid at that office in excess of the                   address information is not provided for           This endorsement obligates the
                                                       mail with the exceptional address                 publisher to pay return postage.
Nonprofit Standard Mail rate since the
                                                       format. The Priority Mail portion of a
effective date of the authorization. No                                                                  *      *    *     *     *
                                                       Priority Mail drop shipment receives the
refund is made:                                                                                             g. Periodicals matter is forwarded
                                                       forwarding, return, and address
*      *     *    *     *                              correction services described in this             only to domestic addresses.
   b. If postage was paid at First-Class               chart. The mail enclosed in a Priority            [Amend the ‘‘Address Service
Mail or Priority Mail rates.                           Mail drop shipment receives the                   Requested’’ portion of 5.2g (chart) to
*      *     *    *     *                              services appropriate for its class. First-        read as follows:]

      Mailer endorsement                                                           USPS action on UAA pieces

‘‘Address Service Re-                First 60 days: piece forwarded; no charge.
   quested’’ 1.
                                     After 60-day period, or if undeliverable: piece returned with address correction or reason for nondelivery attached;
                                       single-piece First-Class or Priority Mail rate as applicable for weight of piece charged.
‘‘Forwarding Service Re-             Not available for Periodicals.
   quested’’.
‘‘Return Service Requested’’         Not available for Periodicals.
‘‘Change Service Re-                 Not available for Periodicals.
   quested’’.
No endorsement 1 .................   First 60 days: piece forwarded; no charge.
                                     After 60-day period, or if undeliverable: separate address correction or reason for nondelivery provided; address
                                        correction fee charged; piece disposed of by USPS.
    1 Valid   for all pieces, including Address Change Service (ACS) participating pieces.


5.3 Standard Mail (A)                                    a. Mail that qualifies for a single-piece       standards is forwarded at, and (if
[Amend 5.3 by deleting 5.3a and                        Special Standard or Library Mail                  necessary) returned at the single-piece
renumbering 5.3b through 5.3i as 5.3a                  Standard Mail (B) rate under the                  First-Class or Priority Mail rate as
through 5.3h, respectively. Revise                     applicable standards is forwarded and             applicable for the weight of the piece.
renumbered 5.3a, 5.3b, and 5.3f through                returned at that rate, if the mailer’s            *      *    *     *     *
5.3h to read as follows:]                              endorsement includes the name of the                f. The weighted fee is the appropriate
   Undeliverable Standard Mail (A) is                  applicable Standard Mail (B) rate.                single-piece First-Class or Priority Mail
treated as described in the chart below                  b. Mail that qualifies for Shipper Paid         rate, as applicable for the weight of the
and under these conditions:                            Forwarding (F020) under the applicable            piece, multiplied by 2.472 and rounded
                       Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                                  37983

up to the next whole cent (if the                     when an unforwardable or                            g. Mail that qualifies for Bulk Parcel
computation yields a fraction of a cent).             undeliverable piece is returned to the           Return Service (BPRS) under the
The weighted fee is computed (and                     sender and the piece is endorsed                 applicable standards in S924 is returned
rounded if necessary) for each piece                  ‘‘Address Service Requested’’ or                 at the BPRS per piece fee if the mailer
individually. Neither the applicable                  ‘‘Forwarding Service Requested.’’ These          uses one of the endorsements that
postage, the factor, nor any necessary                endorsements obligate the sender to pay          includes ‘‘—BPRS.’’
rounding is applied cumulatively to                   the weighted fee on all returned pieces.
multiple pieces. The fee is charged

      Mailer endorsement                                                       USPS action on UAA pieces

‘‘Return Service Re-                 Piece returned with new address or reason for nondelivery attached; only the Bulk Parcel Return Service fee
   quested—BPRS’’.                     charged (address correction fee not charged).
‘‘Address Service Re-                Months 1 through 12: piece forwarded; no charge to addressee; separate ACS notice of new address provided;
   quested—BPRS’’.                     ACS address correction fee and postage at single-piece First-Class or Priority Mail rate as applicable for
                                       weight of piece charged via ACS participant code.
                                     Months 13 through 18: piece returned with new address attached; only the Bulk Parcel Return Service fee
                                       charged (address correction fee not charged).
                                     After Month 18, or if undeliverable: piece returned with reason for nondelivery attached; only Bulk Parcel Return
                                       Service fee charged (address correction fee not charged).

      h. Standard Mail (A) is forwarded only to domestic addresses.

      Mailer endorsement                                                       USPS action on UAA pieces

‘‘Address Service Re-                Months 1 through 12: piece forwarded; no charge; separate notice of new address provided; address correction
   quested’’ 1.                        fee charged.
                                     Months 13 through 18: piece returned with new address attached; only weighted fee charged (address correction
                                       fee not charged).
                                     After month 18, or if undeliverable: piece returned with reason for nondelivery attached; only weighted fee
                                       charged (address correction fee not charged).
‘‘Forwarding Service Re-             Months 1 through 12: piece forwarded; no charge.
   quested’’.
                                     Months 13 through 18: piece returned with new address attached; only weighted fee charged (address correction
                                       fee not charged).
                                     After month 18, or if undeliverable: piece returned with reason for nondelivery attached; only weighted fee
                                       charged (address correction fee not charged).
‘‘Return Service Requested’’         Piece returned with new address or reason for nondelivery attached; only return postage at single-piece First-
                                       Class or Priority Mail rate as applicable for weight of piece charged (address correction fee not charged).
‘‘Change Service Re-                 Separate notice of new address or reason for nondelivery provided; in either case, address correction fee
   quested’’ 1.                        charged; piece disposed of by USPS.
No endorsement ...................   Piece disposed of by USPS.
    1 Valid   for all pieces, including Address Change Service (ACS) participating pieces.


*       *        *     *      *                       6.2   Standard Mail (A)                          envelope or wrapper from which lost
                                                                                                       and to return or forward the articles.
6.0 ENCLOSURES AND                                       Undeliverable, unendorsed Standard
                                                      Mail (A) with a nonincidental First-               a. Nonmail matter (e.g., wallets and
ATTACHMENTS
                                                      Class Mail attachment or enclosure is            bank deposits) found in collection boxes
[Amend the first sentences of 6.1 and                 returned at the single-piece First-Class         or at other points within USPS
6.2 to read as follows:]                              Mail or Priority Mail rate as applicable         jurisdiction is returned postage due at
                                                      for the weight of the piece. The weight          the single-piece First-Class Mail or
6.1     Periodicals                                                                                    Priority Mail rate for keys and
                                                      of the First-Class Mail attachment or
                                                      enclosure is not included when                   identification devices that is applicable
   Undeliverable Periodicals                                                                           based on the weight of the matter.
publications (including publications                  computing the charges for return of the
                                                      mailpiece. Undeliverable, unendorsed             *     *     *     *     *
pending Periodicals authorization) with
a nonincidental First-Class Mail                      Standard Mail (A) with an incidental             F020 Forwarding
attachment or enclosure are returned at               First-Class Mail attachment or enclosure
                                                      is treated as dead mail.                         *     *      *     *     *
the single-piece First-Class Mail or
Priority Mail rate as applicable for the              *      *    *     *    *                         2.0 FORWARDABLE MAIL
weight of the piece. The weight of the                8.0   DEAD MAIL                                  *     *      *     *     *
attachment or enclosure is not included
when computing the charges for return                 8.1   Basic Information                          2.3 Discontinued Post Office
of the mailpiece. Undeliverable                       [Amend 8.1 to read as follows:]                  [Amend 2.3 by removing ‘‘and all
Periodicals publications (including                      Dead mail is matter deposited in the          Single-Piece Standard Mail’’ to read as
publications pending Periodicals                      mail that is or becomes undeliverable            follows:]
authorization) with an incidental First-              and cannot be returned to the sender               All Express Mail, First-Class Mail,
Class Mail attachment or enclosure are                from the last office of address. Every           Periodicals, and Standard Mail (B)
treated as dead mail unless endorsed                  reasonable effort is made to match               addressed to a discontinued post office
‘‘Address Service Requested.’’                        articles found loose in the mail with the        may be forwarded without added charge
37984                       Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

to a post office that the addressee                                          serving where U.S. mail service operates                                       Other
designates as more convenient than the                                       is forwarded at no added charge when                                           AMERICAN STANDARDS INSTITUTE
office to which the USPS ordered the                                         the change of address is caused by                                               INC, 11 W 42ND ST, NEW YORK NY
mail sent.                                                                   official orders. * * *                                                           10036–8002, (212) 642–4900
2.4       Rural Delivery                                                     3.0       POSTAGE FOR FORWARDING                                               AUTOMATIC IDENTIFICATION
                                                                                                                                                              MANUFACTURERS (AIM), 634
[Amend 2.4 by removing ‘‘and all                                             *          *         *         *         *
                                                                                                                                                              ALPHA DR, PITTSBURGH PA 15238–
Single-Piece Standard Mail’’ to read as                                      3.5       Standard Mail (A)                                                      2802, www.aimusa.org
follows:]                                                                                                                                                   UNIFORM CODE COUNCIL INC, 8163
  When rural delivery service is                                             [Amend the second sentence of 3.5 to                                             OLD YANKEE RD STE J, DAYTON
established or changed, a customer of                                        read as follows:]                                                                OH 45458–1839
any office receiving mail from the rural                                        * * * Shipper Paid Forwarding, used                                         *    *    *    *     *
carrier of another office may have all                                       in conjunction with Address Change
Express Mail, First-Class Mail,                                              Service (F030), provides mailers of                                            L Labeling Lists
Periodicals, and Standard Mail (B)                                           Standard Mail (A) machinable parcels                                           *     *    *     *     *
forwarded to the latter office for                                           an option of paying forwarding postage                                         [Delete the heading ‘‘L100 First-Class
delivery by the rural carrier without                                        at the single-piece First-Class or Priority                                    Mail’’ and labeling list L102.]
added charge, if the customer files a                                        Mail rate as applicable for the weight of
written request with the postmaster at                                       the piece. * * *                                                               L600 Standard Mail
the former office.                                                           *     *     *     *    *                                                       *     *    *     *     *
*     *     *    *      *                                                                                                                                   [Insert new labeling list L605 as
                                                                             G       The USPS and Mailing Standards
2.6       Mail for Military Personnel                                                                                                                       follows:]
                                                                             *          *         *         *         *
[Amend the first sentence of 2.6 by                                                                                                                         L605 BMCs—Nonmachinable Parcel
removing ‘‘and all Single-Piece                                              G040           Information Resources                                           Post
Standard Mail’’ to read as follows:]                                         *          *         *         *         *                                       Mailers preparing BMC Presort and
  All Express Mail, First-Class Mail,                                        G043           Address List For Correspondence                                 OBMC Presort Parcel Post mailings of
Periodicals, and Standard Mail (B)                                                                                                                          nonmachinable parcels must sort the
addressed to persons in the U.S. Armed                                       [Add the following at the end of the                                           parcels and label pallets according to
Forces (including civilian employees)                                        unit:]                                                                         this list.

                                                          Column A—destination ZIP codes                                                                                           Column B—label to

005–007, 009, 068–079, 085–098, 100–119, 124–127, 340 ............................................................................                                           BMC NEW JERSEY NJ 00102
006–009 ..............................................................................................................................................................       SCF SAN JUAN PR 006 1
008 ......................................................................................................................................................................   BMC NEW JERSEY NJ 00102 2
008 ......................................................................................................................................................................   BMC JACKSONVILLE FL 32099 3
010–067, 120–123, 128, 129 .............................................................................................................................                     BMC SPRINGFIELD MA 05500
130–136, 140–149 .............................................................................................................................................               ASF BUFFALO NY 140
150–168, 260–266, 439–447 .............................................................................................................................                      BMC PITTSBURGH PA 15195
080–084, 137–139, 169–199 .............................................................................................................................                      BMC PHILADELPHIA PA 19205
200–212, 214–239, 244, 254, 267, 268 .............................................................................................................                           BMC WASHINGTON DC 20499
240–243, 245–249, 270–297, 376 .....................................................................................................................                         BMC GREENSBORO NC 27075
298, 300–312, 317–319, 350–352, 354–368, 373, 374, 377–379, 399 ............................................................                                                 BMC ATLANTA GA 31195
299, 313–316, 320–339, 341, 342, 344, 346, 347, 349 ....................................................................................                                     BMC JACKSONVILLE FL 32099
369–372, 375, 380–397, 700, 701, 703–705, 707, 708, 713, 714, 716, 717, 719–729 ...................................                                                          BMC MEMPHIS TN 38999
250–253, 255–259, 400–418, 421, 422, 425–427, 430–433, 437, 438, 448–462, 469–474 ............................                                                               BMC CINCINNATI OH 45900
434–436, 465–468, 480–497 .............................................................................................................................                      BMC DETROIT MI 48399
500–516, 520–528, 612, 680, 681, 683–689 .....................................................................................................                               BMC DES MOINES IA 50999
498, 499, 540–551, 553–564, 566 .....................................................................................................................                        BMC MPLS/ST PAUL MN 55202
570–577 ..............................................................................................................................................................       ASF SIOUX FALLS SD 570
565, 567, 580–588 .............................................................................................................................................              ASF FARGO ND 580
590–599, 821 .....................................................................................................................................................           ASF BILLINGS MT 590
463, 464, 530–532, 534, 535, 537–539, 600–611, 613 ....................................................................................                                      BMC CHICAGO IL 60808
420, 423, 424, 475–479, 614–620, 622–631, 633–639 ....................................................................................                                       BMC ST LOUIS MO 63299
640, 641, 644–658, 660–662, 664–679, 739 .....................................................................................................                               BMC KANSAS CITY KS 64399
730, 731, 734–738, 740, 741, 743–746, 748, 749 ............................................................................................                                  ASF OKLAHOMA CITY OK 730
706, 710–712, 718, 733, 747, 750–799, 885 ....................................................................................................                               BMC DALLAS TX 75199
690–693, 800–816, 820, 822–831 .....................................................................................................................                         BMC DENVER CO 80088
832–834, 836, 837, 840–847, 893, 898, 979 ....................................................................................................                               ASF SALT LAKE CTY UT 840
850, 852, 853, 855–857, 859, 860, 863, 864 ....................................................................................................                              ASF PHOENIX AZ 852
865, 870–875, 877–884 .....................................................................................................................................                  ASF ALBUQUERQUE NM 870
889–891, 900–908, 910–928, 930–935 .............................................................................................................                             BMC LOS ANGELES CA 90901
894, 895, 897, 936–969 .....................................................................................................................................                 BMC SAN FRANCISCO CA 94850
835, 838, 970–978, 980–986, 988–999 .............................................................................................................                            BMC SEATTLE WA 98000
   1 Mailed from ZIP Code areas 006–009.
   2 Ifthe entry post office is in ZIP Code areas 010–269, combine with mail for ZIP Code areas 005–007, 009, 068–079, 085–098, 100–119,
124–127, and 340, and label to BMC NEW JERSEY NJ 00102.
  3 If the entry post office is in ZIP Code areas 270–999, combine with mail for ZIP Code areas 299, 313–316, 320–339, 341, 342, 344, 346,
347, and 349, labeled to BMC JACKSONVILLE FL 32099.
                 Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                       37985

*     *      *    *    *                       b. First-Class Mail. The following           (2) Bound Printed Matter and any
                                            types of First-Class Mail may not be part     other type of mail;
M Mail Preparation and Sortation                                                            (3) Special Standard and any other
                                            of the same mailing despite being in the
M000      General Preparation Standards     same processing category:                     type of mail;
                                               (1) automation rate and any other type       (4) Library Mail and any other type of
M010      Mailpieces                                                                      mail.
                                            of mail;
M011      Basic Standards                      (2) nonautomation Presorted rate and       *     *    *     *    *
                                            any other type of mail;
1.0   TERMS AND CONDITIONS                     (3) nonautomation Presorted rate mail      M012 Markings and Endorsements
*     *      *    *    *                    prepared under the optional upgradable        [Renumber current M012.3.0 and
                                            preparation and nonautomation                 M012.4.0 as M012.4.0 and M012.5.0,
1.3 Preparation Instructions
                                            Presorted rate mail prepared under the        respectively. Reorganize and revise
[Insert new 1.3r and 1.3s to read as        required preparation;                         M012.1.0 and M012.2.0 and insert new
follows:]                                      (4) single-piece rate and any other        M012.3.0 to read as follows:]
   For purposes of preparing mail:          type of mail.
*      *    *      *    *                      c. First-Class Postcards. Postcards and    1.0 MARKINGS—BASIC STANDARDS
   r. An overflow sack for Parcel Post      letters must be prepared as separate          1.1 Class and Rate
DSCF rate mail is a 5-digit sack            mailings except that they may be sorted
                                            together if each meets separate                 Except for single-piece First-Class
prepared with fewer than 7 pieces after                                                   Mail, mailpieces must be marked under
all other sacks for that same 5-digit ZIP   minimum volume mailing requirements.
                                               d. Periodicals. Mail qualifying for the    the corresponding standards to show the
Code area are prepared with 7 or more                                                     class of service and/or rate paid:
pieces per sack as required by M630. If     In-County subclass rates may be part of
                                            a mailing at the Regular rates, or the          a. Single-Piece First-Class Mail may
all of the mail is sacked under M630,                                                     be identified under E130.2.5.
only one overflow sack is permitted for     Nonprofit rates, or the Classroom rates.
                                                                                            b. Presorted First-Class Mail and
each 5-digit ZIP Code. If a mailing is      Mail at carrier route rates,
                                                                                          Standard Mail (A) must be marked
prepared on pallets, remaining pieces of    nonautomation presort rates, and
                                                                                          under 2.0.
Parcel Post mail may be prepared in one     automation rates must each be sorted as         c. Standard Mail (B) must be marked
or more 5-digit overflow sacks only after   separate mailings. However, each of           under 3.0.
one or more 5-digit pallets are prepared    these mailings may be reported on the           d. Priority Mail must be identified
to meet the minimum pallet                  same postage statement provided the           under E120.
requirement specified in M045. More         pieces are for the same publication and         e. Periodicals must be identified
than one overflow sack per 5-digit ZIP      edition. See M041.6.0, M045.5.0,              under E211.
Code area is permitted for mail prepared    M045.7.0, and M200.6.0 for                      f. Express Mail is identified with the
to 5-digit pallets under M045. Pieces in    copalletized, combined, or mixed-rate         Express Mail mailing label (Label 11 or
overflow sacks qualify for the Parcel       level mailings.                               Form 5625) without any other required
Post DSCF rates.                               e. Standard Mail (A). Except as            class or rate marking.
   s. An overflow pallet in a Parcel Post   provided in E620.1.2, the following             g. All mailable hazardous materials
DSCF rate mailing is a 5-digit pallet       types of Standard Mail (A) may not be         must be labeled and/or marked as
containing pieces that remain after one     part of the same mailing:                     required in C020.
                                               (1) automation Enhanced Carrier
or more 5-digit pallets have been                                                         1.2 Enclosures
                                            Route and any other type of mail;
prepared to meet the minimum pallet            (2) non-carrier route automation and
requirement specified in M045. Only                                                         Enclosures, attachments, and mixed
                                            any other type of mail;                       rate mailpieces must be marked under
one overflow pallet per 5-digit ZIP Code       (3) nonautomation Enhanced Carrier
area is permitted for DSCF rate mail                                                      the applicable standards in E070, M070,
                                            route and any other type of mail;             and P070.
palletized under M045. Pieces on 5-digit       (4) Presorted rate mail and any other
overflow pallets qualify for the DBMC       type of mail;                                 1.3 Printing and Designs
rates.                                         (5) Presorted rate mail prepared under       Required markings may be printed by
1.4 Mailing                                 the optional upgradable preparation and       a postage meter, special slug, ad plate,
                                            Presorted rate mail prepared under the        or other means that ensures a legible
[Amend 1.4 to read as follows:]             required preparation;
  Mailings are defined as:                                                                marking. A marking may not include or
                                               (6) except as provided by standard,        be part of a decorative design or
  a. General. A mailing is a group of       Regular mail may not be in the same
pieces within the same class of mail                                                      advertisement.
                                            mailing as Nonprofit mail, and
and, except for certain parcel rates, the   Enhanced Carrier Route mail may not be        2.0 MARKINGS—FIRST-CLASS MAIL
same processing category that may be        in the same mailing as Nonprofit              AND STANDARD MAIL (A)
sorted together and/or may be presented     Enhanced Carrier Route mail.
under a single minimum volume                                                             2.1 Placement
                                               See M041.6.0, M045.5.0, M045.7.0,
mailing requirement under the               and M200.6.0 for copalletized,                   a. Basic Marking. The basic required
applicable standards. Generally, types of   combined, or mixed-rate level mailings.       marking that indicates the class or
mail that follow different flows through       f. Standard Mail (B). Except for single-   subclass—‘‘First-Class.’’ ‘‘Presorted
the postal processing system (e.g.,         piece rate pieces not otherwise subject       Standard’’ or ‘‘PRSRT STD’’ (or, until
automation, nonautomation carrier           to a minimum mailing requirement that         January 10, 2001, ‘‘Bulk Rate’’ or ‘‘Blk.
route, and other nonautomation) and         are presented under an approved               Rt.’’); or ‘‘Nonprofit Organization’’ or
mail for each separate class and subclass   manifest mailing system under P710,           ‘‘Nonprofit Org.’’ or ‘‘Nonprofit’’ must
must be prepared as a separate mailing.     the following types of Standard Mail (B)      be printed or produced as part of, or
Other specific standards may define         may not be part of the same mailing           directly below or to the left of, the
whether separate mailings may be            even if in the same processing category:      permit imprint indicia, meter stamp or
combined, palletized, reported, or             (1) Parcel Post mail and any other         impression, or adhesive or precanceled
deposited together.                         type of mail;                                 stamp.
37986           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

   b. Other Markings. Other rate-specific    3.0 Placement of Markings—Standard            M032     Barcoded Labels
markings (‘‘Presorted’’ or ‘‘PRSRT’’ and     Mail (B)
                                                                                           1.0 BASIC STANDARDS—TRAY AND
‘‘Single-Piece’’ or ‘‘SNGLP’’ (First-Class
                                             3.1   Basic Markings                          SACK LABELS
Mail only); ‘‘AUTO’’ and ‘‘AUTOCR’’
(First-Class Mail and Standard Mail             The basic required marking that            *    *      *    *    *
(A)); ‘‘ECRLOT,’’ ‘‘ECRWSH,’’ and            indicates the subclass—‘‘Bound Printed        1.3 Content Line (Line 2)
‘‘ECRWSS’’ (Standard Mail (A) only)          Matter;’’ ‘‘Special Standard Mail’’ or
may be placed in the location specified                                                    [Amend Exhibit 1.3a by deleting the
                                             ‘‘SPEC STD,’’ ‘‘Library Rate’’ or ‘‘Library   following headings and all information
in 2.1a or, if the marking appears alone     Mail’’—must be printed on the
or if no other information appears on                                                      under them: Priority Mail Letters—
                                             mailpiece. Effective January 10, 2000,        Presorted; Priority Mail Flats—
the line with the marking except postal      these basic required markings must be
optional endorsement line information                                                      Presorted; and Priority Mail Parcels—
                                             printed or produced as part of, or            Presorted.]
under M013 or postal carrier route           directly below or to the left of, the
package information under M014, may                                                        [Amend Exhibit 1.3a, Periodicals (PER),
                                             permit imprint indicia or meter stamp         by changing the heading ‘‘PER Letters—
be placed in the address area on the line    or impression. The markings ‘‘Parcel          3⁄5 and Basic’’ to ‘‘PER Letters—5-Digit,
directly above or two lines above the        Post’’ or ‘‘PP’’ also must be printed or
address. If preceded by two asterisks,                                                     3-Digit, and Basic.’’]
                                             produced as part of, or directly below or     [Amend Exhibit 1.3a, Periodicals (PER),
the ‘‘AUTO,’’ ‘‘AUTOCR,’’ ‘‘Single-          to the left of, the permit imprint indicia
Piece,’’ or ‘‘SNGLP’’ markings also may                                                    by changing the heading ‘‘PER Flats—3⁄5
                                             or meter stamp or impression. These           and Basic’’ to ‘‘PER Flats—5-Digit, 3-
be placed on the line above or two lines     Parcel Post markings are required for
above the address in a mailer keyline or                                                   Digit, and Basic.’’]
                                             drop shipment rate mail and, effective        [Amend Exhibit 1.3a, Periodicals (PER),
a manifest keyline or placed above the       January 10, 2000, will be required for all
address and below the postage in an                                                        by changing the heading ‘‘PER Parcels—
                                             Parcel Post mail.                             3⁄5 and Basic’’ to ‘‘PER Parcels—5-Digit,
MLOCR ink-jet printed date correction/
meter drop shipment line. Alternatively,                                                   3-Digit, and Basic.’’]
                                             3.2   Other Parcel Post Markings
the ‘‘AUTO’’ or ‘‘AUTOCR’’ markings                                                        [Amend Exhibit 1.3a, Periodicals
                                                The required markings ‘‘Drop Ship’’        (NEWS), by changing the heading
may be placed to the left of the DPBC
                                             or ‘‘D/S’’ for Parcel Post drop shipment      ‘‘NEWS Letters—3⁄5 and Basic’’ to
(subject to the barcode location and
                                             rate mail may be placed in the postage        ‘‘NEWS Letters—5-Digit, 3-Digit, and
clear zone standards in C840).
                                             area location specified in 3.1.               Basic.’’]
   c. Additional Requirements for Carrier    Alternatively, it may be placed in the        [Amend Exhibit 1.3a, Periodicals
Route. ‘‘AUTOCR’’ (First-Class Mail                                                        (NEWS), by changing the heading
                                             address area on the line directly above
only), ‘‘ECRLOT,’’ ‘‘ECRWSH,’’ and                                                         ‘‘NEWS Flats—3⁄5 and Basic’’ to ‘‘NEWS
                                             or two lines above the address if the
‘‘ECRWSS’’ (Standard Mail (A) only)                                                        Flats—5-Digit, 3-Digit, and Basic.’’]
                                             marking appears alone (no other
must appear in their entirety wherever                                                     [Amend Exhibit 1.3a, Periodicals
                                             information appears on that line). Until
placed, except ‘‘ECR’’ may be placed in                                                    (NEWS), by changing the heading
                                             January 10, 2000, mail qualifying for the
the postage area if ‘‘LOT,’’ ‘‘WSH,’’ or                                                   ‘‘NEWS Parcels—3⁄5 and Basic’’ to
                                             DBMC rate may bear the marking
‘‘WSS,’’ as applicable, is placed in the                                                   ‘‘NEWS Parcels—5-Digit, 3-Digit, and
                                             ‘‘DBMC Parcel Post’’ or ‘‘DBMC PP’’ in
line above or two lines above the                                                          Basic.’’]
                                             either location.
address, as specified in 2.1b.                                                             [Amend Exhibit 1.3a, Standard Mail (B),
                                             3.3 Other Bound Printed Matter                by changing the heading ‘‘Bulk Bound
2.2   Exceptions to Markings
                                             Markings                                      Printed Matter Flats—Carrier Route’’ to
   a. AUTO Marking. Non-carrier route                                                      ‘‘Bound Printed Matter Flats—Carrier
                                                The required markings ‘‘Presorted’’        Route’’]
automation rate First-Class Mail and
                                             (or ‘‘PRSRT’’) or ‘‘Presorted Standard’’      [Amend Exhibit 1.3a, Standard Mail (B),
Standard Mail (A) pieces do not require
an ‘‘AUTO’’ marking if they bear a           (or ‘‘PRSRT STD’’) or ‘‘Carrier Route         by changing the heading ‘‘Bulk Bound
DPBC in the address block or on an           Presort’’ (or ‘‘CAR-RT SORT’’) may be         Printed Matter Flats—Basic’’ to
insert visible through a window in the       placed in the location specified in 3.1.      ‘‘Presorted Bound Printed Matter Flats—
address block or lower right corner.         Alternatively, these markings may be          Basic’’]
Non-carrier route automation rate First-     placed in the address area on the line        [Amend Exhibit 1.3a, Standard Mail (B),
Class pieces not marked ‘‘AUTO’’ must        directly above or two lines above the         by changing the heading ‘‘Bulk Bound
bear both the ‘‘Presorted’’ and ‘‘First-     address if the marking appears alone or       Printed Matter Irregular Parcels—Carrier
Class’’ markings. Non-carrier route          if no other information appears on the        Route’’ to ‘‘Bound Printed Matter
automation rate Standard Mail (A)            line with the marking except postal           Irregular Parcels—Carrier Route’’]
pieces not marked ‘‘AUTO’’ must bear         optional endorsement line information         [Amend Exhibit 1.3a, Standard Mail (B),
the appropriate basic marking for            under M013 or postal carrier route            by changing the heading ‘‘Bulk Bound
Standard Mail in 2.1a.                       package information under M014.               Printed Matter Irregular Parcels—Basic’’
   b. Manifest Mailings. The basic           3.4   Other Special Standard Markings         to ‘‘Presorted Bound Printed Matter
marking must appear in the postage area                                                    Irregular Parcels—Basic’’]
on each piece as required in 2.1a. The         The required ‘‘Presorted’’ or ‘‘PRSRT’’     [Amend Exhibit 1.3a, Standard Mail (B),
two-letter rate category code required in    for Special Standard mail may be placed       by changing the heading ‘‘Bulk Bound
the keyline on manifest mailing pieces       in the location specified in 3.1.             Printed Matter Machinable Parcels—
prepared under P710 meets the                Alternatively, it may be placed in the        Basic’’ to ‘‘Presorted Bound Printed
requirement for other rate markings          address area on the line directly above       Matter Machinable Parcels—Basic’’]
(e.g., on a First-Class piece mailed at      or two lines above the address if the         [Amend Exhibit 1.3a, Standard Mail (B),
automation carrier route rates, the ‘‘AC’’   marking appears alone (no other               by inserting a new Parcel Post category
code may replace the ‘‘AUTOCR’’              information appears on that line).            after Parcel Post Machinable Parcels to
marking).                                    *     *     *     *    *                      read as follows:]
                       Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                               37987

                                       Human-readable      4.2   Height                                 DSCF rate under M630 (see M045).
      Class and mailing                                      The combined height of a single            There are no minimums for the Parcel
                                                 Content                                                Post DDU rate.
                                       CIN                 pallet, pallet box, and mail may not
                                                  line
                                                           exceed 77 inches. The contents of the        [Renumber current 5.4 through 5.7 as
                                                           box may not extend above the top rim         5.5 through 5.8, respectively. Insert new
    *           *            *               *       *     of the box. For Parcel Post DSCF and         5.4 to read as follows:]
                                                           Parcel Post DDU rate mailings, the           5.4 Minimum Height of Mail
        Parcel Post DSCF and DDU Rates                     height of the pallet box may not exceed
                                                           60 inches (excluding the pallet). For          The definitions of the minimum
5-digit sacks ..................         688     STD B                                                  height of mail used to qualify for OBMC
                                                   5D      Parcel Post OBMC Presort and BMC
                                                           Presort rate mailings of machinable          Presort, BMC Presort and DSCF Parcel
                                                           pieces, the height of the pallet box must    Post rates are:
    *           *            *               *       *                                                    a. Machinable Parcels at OBMC
                                                           be 69 inches (excluding the pallet).
                                                                                                        Presort and BMC Presort Discounts and
M033        Sacks and Trays                                *     *     *     *     *                    Parcels at DSCF Rates. The minimum
1.0     BASIC STANDARDS                                    4.4   Nonconforming                          height of mail in a pallet box is the
                                                                                                        shortest vertical distance measured from
1.2     Equipment                                             Except when mailing Parcel Post
                                                                                                        the bottom of a pallet box to the top of
                                                           claiming a DSCF or DDU rate, a
                                                                                                        the lowest mailpiece. The height of the
[Revise 1.2c to reflect the new 13-ounce                   nonconforming mailer (see 1.4) may use
                                                                                                        pallet is not included in this
weight limit for First-Class Mail to read                  pallet boxes only if the boxes are
                                                                                                        measurement.
as follows:]                                               constructed of triple-wall corrugated
                                                                                                          b. DSCF Rates and Nonmachinable
  Mailings must be prepared in the                         fiberboard (C-flute and/or B-flute
                                                                                                        Parcels at OBMC Presort and BMC
container appropriate for the processing                   material) with a maximum height (pallet
                                                                                                        Presort Discounts. The minimum height
category and rate of the mail as follows:                  and box) of 77 inches.
                                                                                                        of mail on a pallet is the shortest
*     *     *     *     *                                  5.0   PREPARATION                            vertical distance measured from the top
  c. First-Class Mail parcels weighing                     *     *    *     *     *                     of the pallet to the top of the lowest
less than 13 ounces must be prepared in                                                                 mailpiece. The height of the pallet is not
                                                           5.2   Required Preparation                   included in this measurement.
green USPS sacks.
                                                           [Revise text of 5.2 to read as follows:]     *     *     *      *    *
*     *     *     *     *
                                                             These standards apply to:                  M045     Palletized Mailings
M041        General Standards                                a. Periodicals, Standard Mail (A), and
                                                           Parcel Post (other than BMC Presort,         *    *      *    *     *
*       *       *       *          *
                                                           OBMC Presort, DSCF and DDU rate              2.0 PACKAGES OF FLATS
4.0     PALLET BOXES                                       mail). [Insert current 5.2.]
                                                             b. Parcel Post Mailed at BMC Presort,      *    *      *    *     *
[Revise 4.1, 4.2, and 4.4 to read as                       OBMC Presort, DSCF and DDU Rates.
follows:]                                                                                               2.4 Size—Standard Mail (B)
                                                           Pallets must meet the requirements
                                                                                                        [In 2.4c to change the phrase ‘‘bulk
4.1     Use                                                specifically prescribed for these rates in
                                                                                                        Bound Printed Matter’’ to ‘‘presorted
                                                           M045.
   A mailer may use pallet boxes                                                                        Bound Printed Matter.]
constructed of single-, double-, or triple-                5.3   Minimum Load                           *     *     *    *     *
wall corrugated fiberboard placed on                       [Revise text of 5.3 to read as follows.]     [Add sections 9.0 through 12.0 to
pallets to hold sacks or parcels prepared                    These standards apply to:                  specify preparation requirements for the
under M045. Pallet boxes must protect                        a. Periodicals, Standard Mail (A), and     new BMC Presort, OBMC Presort, DSCF,
the mail and maintain the integrity of                     Parcel Post (Other than BMC Presort,         and DDU rates as follows:]
the pallet loads throughout                                OBMC Presort, DSCF and DDU Rate              9.0 PARCEL POST—BULK MAIL
transportation, handling, and                              Mail). [Insert current 5.3.]                 CENTER (BMC) PRESORT DISCOUNT
processing. Single-wall corrugated                           b. Parcel Post Mailed at BMC Presort,
fiberboard may be used only for light                      OBMC Presort, DSCF and DDU Rates.            9.1 Machinable Parcels
loads (such as lightweight parcels) that                     A minimum load for the rate claimed          a. To qualify for the BMC Presort
do not require transportation by the                       may be stated in terms of weight,            discount, machinable pieces must be
USPS beyond the entry office, or for                       combined piece minimum and weight,           sorted to BMCs under L601 in 69-inch
Parcel Post DSCF rate mail. Mailers                        or minimum height. M045 specifies            pallet boxes. Each pallet box must
must supply their own pallet boxes. The                    separate minimum mail heights for            contain at least 52 inches of mail (not
base of the boxes must measure                             machinable parcels and for                   including pallet) for a BMC (see M041).
approximately 40 by 48 inches. M045                        nonmachinable parcels claimed at             Overflow pallet boxes are not permitted.
requires the use of pallet boxes meeting                   OBMC Presort and BMC Presort rates.          Preparation in sacks, directly on pallets,
the size requirements in 4.2 for                           Mail entered at the Parcel Post DSCF         or in other containers is not permitted.
machinable Parcel Post claiming OBMC                       rates and prepared directly on pallets or      b. Pallet Box preparation and Line 1
Presort and BMC Presort discounts.                         in pallet boxes on pallets must be           labeling: destination BMC (required); for
M045 prohibits use of pallet boxes for                     prepared under either a minimum              Line 1 use L601.
nonmachinable Parcel Post claiming                         height requirement or under one of two         c. Pallet Box Line 2 labeling: ‘‘STD B
OBMC Presort and BMC Presort                               options requiring a minimum number of        MACH BMC.’’
discounts. Pallet boxes meeting the size                   pieces and pounds per pallet under
dimensions in 4.2 also may be used at                      M045. There is no minimum weight             9.2 Nonmachinable Parcels
the mailer’s option for Parcel Post DSCF                   requirement for an SCF pallet                  a. To qualify for the BMC Presort
and Parcel Post DDU rate mail.                             containing 5-digit sacks prepared for the    discount, nonmachinable pieces must
37988           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

be sorted to BMCs and ASFs under L605        11.2, each 5-digit pallet must meet a          11.2). For purposes of this section the
directly on pallets. Each pallet for a       minimum volume requirement under               term pallets includes preparation of
BMC or ASF destination must have a           one of the criteria in 11.1b. Machinable       parcels directly on pallets and
minimum height of 42 inches of mail          and nonmachinable pieces may be                preparation of parcels in pallet boxes on
(not including the height of the pallet)     combined on the same pallet or in the          pallets. Machinable and nonmachinable
(see M041). Overflow pallets are not         same overflow sack. In a single mailing        pieces may be combined on the same
allowed. Preparation in sacks, pallet        mailers may prepare some pallets under         pallet or in the same overflow sack. The
boxes, or in other containers is not         the minimum volume requirement in              documentation in 11.2e must be
permitted.                                   11.1b(1) and some pallets under the            presented at the time of verification.
   b. Pallet preparation and Line 1          minimum volume requirement in                  Double-stacking is permitted if the
labeling: destination BMC or destination     11.1b(2). A mailing entered at a               requirements of M041 are met.
ASF (required); for line 1, use L605.        destination SCF facility containing               b. Minimum Volume. To qualify for
   c. Pallet Line 2 labeling: ‘‘STD B NON    pallets prepared under 11.1 also may           the DSCF rate, no pallet may contain
MACH BMC’’ or ‘‘STD B NON MACH               include mail that is sacked for the DSCF       fewer than 35 pieces and 200 pounds,
ASF,’’ as appropriate.                       rate under M630. Double-stacking is            and for the entire mailing the average
10.0 PARCEL POST—ORIGIN BULK                 permitted if the requirements of M041          number of DSCF rate pieces per 5-digit
MAIL CENTER PRESORT (OBMC                    are met.                                       pallet must be at least 50.
                                                b. Minimum Volume. The minimum
PRESORT) DISCOUNT                                                                              c. Overflow. If after filling a pallet or
                                             volume per 5-digit pallet can be met in
10.1 Machinable Parcels                      one of the following ways.                     pallets to a 5-digit destination, pieces
                                                (1) pieces may be placed on 5-digit         remain that do not meet the minimum
  a. To qualify for the OBMC Presort                                                        pallet requirement they may be
discount, machinable pieces must be          pallets each containing at least 50 pieces
                                             and 250 pounds, or                             prepared in one of the following ways.
sorted to BMCs under L601 in 69-inch                                                        One or both methods may be used in a
pallet boxes. Each pallet box must              (2) pieces can be placed on 5-digit
                                             pallets each having a minimum height           single mailing.
contain at least 52 inches of mail (not
                                             of 36 inches of mail (not including the           (1) Placed in 5-digit overflow sacks
including pallet) for a BMC (see M041).
                                             height of the pallet) (see M041).              (no minimum number of pieces per
Overflow pallet boxes are not permitted.
                                                c. Overflow. If after filling a pallet or   sack) that are labeled in accordance
Preparation in sacks, directly on pallets,
                                             pallets to a 5-digit destination, pieces       with the DSCF sacking requirements in
or in other containers is not permitted.
                                             remain that do not meet the minimum            M630. Overflow pieces sacked in this
  b. Pallet Box preparation and Line 1
                                             pallet requirements they may be                manner are eligible for the DSCF rates.
labeling: destination BMC (required); for
Line 1, use L601.                            prepared in one of the following ways.            (2) Placed on a 5-digit pallet labeled
  c. Pallet Box Line 2 labeling: ‘‘STD B     One or both methods may be used in a           under 11.2d that does not meet the
MACH BMC.’’                                  single mailing.                                minimums for the DSCF rate. Overflow
                                                (1) Placed in 5-digit overflow sacks        pieces palletized in this manner are not
10.2 Nonmachinable Parcels                   (no minimum number of pieces per               eligible for the DSCF rates but are
   a. To qualify for the OBMC Presort        sack) that are labeled in accordance           eligible for the DBMC rates.
discount, nonmachinable pieces must          with the 5-digit sacking requirements
                                                                                               d. 5-digit pallet labeling:
be sorted to BMCs and ASFs under L605        for the DSCF rate in M630. Overflow
                                             pieces sacked in this manner are eligible         (1) For Line 1, use city, state, and 5-
directly on pallets. Each pallet for a
                                             for the DSCF rates.                            digit ZIP Code destination of contents.
BMC or ASF destination must have a
minimum height of 42 inches of mail             (2) Placed on a 5-digit pallet labeled         (2) For Line 2 use: ‘‘STD B 5D.’’
(not including the height of the pallet)     under 11.1d that does not meet the                (3) In mailer area below line 3: the
(see M041). Overflow pallets are not         minimums for the DSCF rate. Overflow           pallet ID number.
allowed. Preparation in sacks, pallet        pieces palletized in this manner are not
                                             eligible for the DSCF rates but are               e. Documentation. A list of each 5-
boxes, or in other containers is not                                                        digit pallet in the mailing that qualifies
permitted.                                   eligible for the DBMC rates.
                                                d. 5-digit pallet labeling:                 for the DSCF rate must be submitted.
   b. Pallet preparation and Line 1                                                         The pallets in the mailing that qualify
labeling: destination BMC or destination        (1) for Line 1, use city, state, and 5-
                                             digit ZIP Code destination of contents.        for the DSCF rate must be numbered
ASF (required); for line 1, use L605.                                                       sequentially, and this pallet
   c. Pallet Line 2 labeling: ‘‘STD B NON       (2) for Line 2 use: ‘‘STD B 5D.’’
                                                e. Separation. If sacks prepared under      identification number must be printed
MACH BMC’’ or ‘‘STD B NON MACH                                                              below Line 3 on the pallet label. The
                                             M630 are included in the same mailing
ASF,’’ as appropriate.                                                                      documentation must list each pallet in
                                             as pallets prepared under this section, at
11.0 PARCEL POST DSCF RATES—                 the time of acceptance the mailer must         sequential order by pallet identification
PARCELS ON PALLETS                           separate sacks that are overflow from          number. The listing must show for each
                                             palletized mail from those sacks that          pallet the pallet identification number,
11.1 Basic Preparation, Parcels on                                                          the 5-digit ZIP Code of the pallet, the
                                             were prepared under the provisions of
Pallets                                                                                     total weight of pieces on the pallet, the
                                             M630.
  Unless prepared under 11.2, or in                                                         total number of pieces on the pallet, and
sacks under M630, mail must be               11.2 Alternate Preparation, Parcels on         the cumulative total of pieces (i.e., the
prepared for the DSCF rate as follows:       Pallets                                        number equal to the number of pieces
  a. General. Parcels for each SCF area        DSCF rate mailings not prepared              for that pallet plus the sum of the pieces
must be sorted to 5-digit ZIP Codes on       under 11.1 may be prepared as follows:         on all pallets listed above it). This
pallets. For purposes of this section the      a. General. All DSCF rate mail in the        documentation must not include: pieces
term pallets includes preparation of         mailing must be sorted to 5-digits under       prepared in overflow sacks at the DSCF
parcels directly on pallets and              11.2 (i.e., mail prepared under 11.1 and       rate, and pieces prepared on overflow
preparation of parcels in pallet boxes on    mail sacked under M630 must not be             pallets at the DBMC rates, or pieces
pallets. Except when prepared under          included in a mailing prepared under           claimed at any other rate in the mailing.
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                        37989

11.3 5-Digit ZIP Codes for Which              transports mail to the DDU facility on      active possible deliveries per carrier
Pallets May Not Be Prepared                   pallets, the driver must unload the         route under E230.6.4c, the
  Refer to the Drop Shipment Product          pallets into a container specified by the   documentation must show for each
available from the National Customer          delivery unit.                              carrier route for which the rates are
Support Center (NCSC) (see G043) and          M050      Delivery Sequence                 claimed the total number of active
to Exhibits E652.6.0 and E652.7.0 to                                                      possible deliveries and the number and
determine if the facility serving the 5-      *     *      *    *    *                    percentage of deliveries to which
digit destination can handle pallets.         4.0   DOCUMENTATION                         mailpieces are addressed. The
There is a charge for the Drop Shipment                                                   documentation must be listed by 5-digit
                                              [Revise 4.1 and 4.2 to read as follows:]
Product. If a facility cannot handle                                                      ZIP Code and, within each, by carrier
pallets, the DSCF rate is not applicable      4.1   General                               route. It must be submitted with each
unless the mail can be prepared under            The mailer must provide                  applicable mailing.
the sacking requirement in M630.              documentation as described below to         *     *     *     *    *
11.4 5-Digit ZIP Codes Requiring BMC          substantiate compliance with the
                                              standards for carrier sequencing. Unless    M070      Mixed Classes
Entry
  Refer to Exhibit E652.5.0 for 5-digit       the documentation is submitted with         *     *      *    *       *
destinations where palletized mail must       the corresponding mailing, the mailer
                                              must be able to provide the USPS with       M072 Express Mail and Priority Mail
be entered at the BMC that serves the                                                     Drop Shipment
SCF to obtain the DSCF rate.                  documentation of accurate sequencing
                                              or delivery statistics for each carrier     1.0 BASIC STANDARDS
12.0 PARCEL POST DSCF RATES—                  route to which walk-sequence rate
SACKS ON PALLETS                              pieces are mailed. The mailer must          1.1   Standards
   Mailers who prepared DSCF rate mail        annotate the postage statement to show      [Revise 1.1 by adding references to
in 5-digit sacks under M630 may place         the earliest (oldest) date of the method
                                                                                          M072 and D071 to read as follows:]
5-digit sacks for the same SCF area on        (in 41.a through 4.1e) used to obtain
an SCF pallet (including a pallet box on      sequencing of delivery stop information       The Express Mail or Priority Mail
a pallet). Mailers who prepare overflow       for the mailing. For Periodicals the        portion of the shipment must meet the
from pallets under 11.1 or 11.2 may           postage statement must be annotated in      standards in M500 or M100
place 5-digit sacks for the same SCF area     the ‘‘Sequencing Date’’ block on each of    respectively, and the applicable
on an SCF pallet (including a pallet box      the lines where high density and            standards in M072 and D071.
on a pallet). See 11.1e for requirements      saturation per piece rate postage is        *     *     *    *     *
concerning separation of sacks prepared       reported. For Standard Mail (A) the
under M630 from sacks prepared under          postage statement must be annotated in      2.0 ADDITIONAL STANDARDS FOR
11.1. There are no pallet minimums for        the ‘‘Sequencing Date’’ block on the        ENCLOSED MAIL
such pallets. Mailers may prepare such        front of the postage statement where        2.5 Standard Mail (B)
SCF pallets without having to prepare         total postage for Enhanced Carrier Route
all possible 5-digit pallets prior to         rates is reported. One or more of these     [Amend 2.5 to delete the reference to
preparing the SCF pallet. The pallets         must be submitted:                          ‘‘Bulk Parcel Post,’’ to change the phrase
must be labeled in the following                 a. CDS invoice.                          ‘‘bulk Bound Printed Matter’’ to
manner:                                          b. DSF invoice or DSF documentation.     ‘‘presorted Bound Printed Matter,’’ to
   Line 1: Use L002, Column C                    c. Copies of the delivery unit           add and exception to the zone
   Line 2: STD B PP 5D SACKS                  summaries that served as the mailer’s       separation requirement, and to add
13.0 PARCEL POST DDU RATES                    bills for address sequencing service        information on new Parcel Post DSCF
                                              charges.                                    and DDU rates to read as follows:]
   Parcels may be bedloaded, sacked, or          d. Evidence of receipt of information
palletized. For purposes of this section      from postmasters under A930 for                Presorted Bound Printed Matter paid
the term pallets includes preparation of      simplified address mailings.                with meter or permit imprint, or single-
parcels directly on pallets and                  e. Date LOT product used.                piece rate Parcel Post or Bound Printed
preparation of parcels in pallet boxes on                                                 Matter paid with permit imprint, must
pallets. There are no preparation or          4.2   High Density                          be sorted by zone in separate Priority
presort requirements for DDU rate               The following documentation must be       Mail or Express Mail pouches unless
mailings other than separation by 5-          submitted for high density rate mail:       presented under a special postage
digit. If pieces are sacked or palletized,      a. Standard Mail (A) and Periodicals      payment system under P710, P720, or
they must be prepared to 5-digits and         Other than In-County Mail Qualifying        P730. If the enclosed mail is not
labeled as follows: Line 1 labeling—use       Under E230.6.4c. For each carrier route     presented under a special postage
city, state, and 5-digit ZIP Code             to which high density rate mail is          payment system under P710, P720, or
destination; Line 2 use ‘‘STD B 5D.’’         addressed, the mailer must document         P730, the Priority Mail or Express Mail
Machinable and nonmachinable pieces           the total number of addressed pieces to     pouches must be separated into groups
may be combined. Refer to the Drop            the route. If there are fewer than 125      by postal zone when presented to the
Shipment Product maintained by the            addressed pieces for a given route, the     USPS. For Parcel Post mail, the DBMC,
National Customer Support Center              documentation also must show the            DSCF, or DDU entry rate may be
(NCSC) (see G043) and the information         number of possible deliveries on the        claimed subject to E652 and the
in E652 including Exhibits E652.6.0 and       route.                                      destination of the Express Mail or
E652.7.0 to determine the location of the       b. Periodicals In-County Mail             Priority Mail sack.
5-digit delivery facility, whether that       Qualifying Under E230.6.4c. For each
facility can handle pallets (including        carrier route for which Periodicals In-     *     *     *     *     *
pallet boxes on pallets). If a DDU facility   County high density rates are claimed       [Revise the title of M073 to read as
cannot handle pallets, and a mailer           under the minimum 25% of the total          follows:]
37990            Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

M073 Combined Mailings of Standard          2.0 COMBINED PARCELS—PARCEL                    (3) If palletized under the alternate
Mail (A) and Standard Mail (B) Parcels      POST OBMC PRESORT, BMC                      pallet preparation where no pallet may
[Revise the title of 1.0 to read as         PRESORT, AND DSCF RATES                     contain fewer than 35 pieces and 200
follows:]                                                                               pounds provided the average number of
                                            2.1 Qualification
                                                                                        pieces on pallets qualifying for the
1.0 COMBINED MACHINABLE                       a. When claiming Parcel Post OBMC         DSCF rate is at least 50, Standard Mail
PARCELS—RATES OTHER THAN                    Presort and BMC Presort discounts and       (A) parcels may not be combined with
PARCEL POST OBMC PRESORT, BMC               DSCF rates, machinable Standard Mail        Standard Mail (B) parcels.
PRESORT, DSCF, AND DDU                      (A) parcels may be combined with               (4) If palletized under the option to
                                            machinable Standard Mail (B) parcels        prepare 5-digit pallets under the 36-inch
[Renumber current 1.1 as 1.2, insert new
                                            under 2.0.                                  high (mail only) pallet minimum, any
1.1, and revise section numbers in            b. When claiming the Parcel Post
renumbered 1.2 to read as follows:]                                                     combination of Standard Mail (A) and
                                            DSCF rate, machinable and                   Standard Mail (B) parcels may be used
1.1   Qualification                         nonmachinable Standard Mail (A) may         to meet the minimum pallet height
                                            be combined with machinable and             requirement.
  Machinable Standard Mail (A) and
                                            nonmachinable Standard Mail (B)                (5) Line 2 of 5-digit pallet and sack
machinable Standard Mail (B) parcels
                                            parcels under 2.0.                          labels must read: ‘‘STD A/B 5D.’’
may be combined under the sortation           c. Standard Mail (A) parcels may not
and other requirements in 1.0 except                                                       (6) Standard Mail (A) parcels are
                                            be combined with Standard Mail (B)          eligible for the Presorted 3/5 rate.
when claiming the following Parcel Post     parcels prepared for DDU rates.
rates or discounts: OBMC Presort, BMC                                                      c. Parcel Post Qualifying for OBMC
Presort, DSCF, and DDU. When                2.2 Authorization                           Presort or BMC Presort rates. The
claiming the OBMC Presort, BMC                                                          combined mailings must be prepared
                                              Mailers must be authorized under 1.5
Presort, or DSCF rates, machinable                                                      under the M040 BMC pallet
                                            to prepare mailings that combine
Standard Mail (A) and machinable                                                        requirements for machinable parcels at
                                            Standard Mail (A) and Standard Mail
Standard Mail (B) parcels may be                                                        Parcel Post OBMC Presort or BMC
                                            (B) parcels.
combined under the sortation and other                                                  Presort rates. All other requirements for
requirements in 2.0. Standard Mail (A)      2.3   Postage Payment                       the Parcel Post OBMC Presort or BMC
parcels must not be combined with             Postage for all pieces must be paid       Presort rates and the Presorted Standard
Standard Mail (B) parcels prepared for      with permit imprint at the post office      Mail (A) rates must be met. The
DDU rates.                                  serving the mailer’s plant under an         following additional requirements
                                            approved manifest mailing system            apply:
1.2   Description                                                                          (1) The minimum height requirement
                                            under P710. The applicable agreement
   Subject to 1.1 and authorization under   must include procedures for combined        for each pallet or pallet box on a pallet
1.5, a mailer who is authorized plant       mailings approved by the RCSC.              may be met using any combination of
load or plant-verified drop shipment                                                    Standard Mail (A) and Standard Mail
privileges may prepare a combined           2.4   Preparation and Rates                 (B) parcels.
mailing of Standard Mail (A) and              a. Minimum Mailing Volume.                   (2) Line 2 of BMC pallet box labels
Standard Mail (B) machinable parcels        Separate minimum mailing volume             must read: ‘‘STD A/B MACH BMC.’’
that have been merged and sorted            requirements must be met for Standard          (3) Standard Mail (A) parcels are
together in sacks (under 1.5) or on         Mail (A) parcels and for Standard Mail      eligible for the Presorted 3⁄5 rate only if
pallets (under M040) to achieve the         (B) parcels.                                it can be shown by documentation that
finest presort level. The combined            b. Parcel Post Qualifying for DSCF        there was insufficient volume of
mailing must meet the standards in 1.0      Rates. The combined mailings must be        Standard Mail (A) parcels in the mailing
and those that apply to the rates           prepared under the applicable 5-digit       to prepare separate 5-digit pallets
claimed. Each parcel in a combined          sack requirements in M630, or the           required for Standard Mail (A)
mailing is subject to the applicable        applicable 5-digit pallet requirements in   machinable parcels under M045.
Standard Mail rate, based on the            M040 for the Parcel Post DSCF rates. All    Otherwise, Presorted basic rates apply
corresponding standards. Required           other requirements for the Parcel Post      to the Standard Mail (A) parcels.
volume for bulk or presort rates is based   DSCF rates and the Presorted Standard
                                                                                        2.5 Documentation
solely on the quantity of pieces eligible   Mail (A) rates, as applicable, must be
for each rate at the required presort       met. The following additional                 Presort documentation is required as
level. Pieces claimed at other rates in     requirements apply:                         applicable for each rate claimed if the
the same sack or on the same pallet do        (1) If sacked under M630, the             manifest does not list pieces in presort
not count.                                  minimum requirement of 7 pieces per         order. Separate postage statements must
[Renumber existing 1.2 and 1.3 as 1.3       sack must be met with only Standard         be prepared for the Standard Mail (A)
and 1.4, respectively.]                     Mail (B) parcels. After the minimum         and Standard Mail (B) pieces. Within
                                            sack volume has been met, Standard          each group, combined forms may be
[Renumber existing 2.0 as 1.5.                                                          prepared where the standards and the
                                            Mail (A) parcels may be included in the
Renumber existing 2.1 through 2.3 as                                                    forms permit. All postage statements
                                            sack or in overflow sacks.
1.5a through 1.5c, respectively.]                                                       must be provided at the time of mailing.
                                              (2) If palletized under the option to
[Renumber existing 3.0 as 1.6.              prepare 5-digit pallets when there are at   *    *     *     *     *
Renumber existing 3.1 as 1.6a and           least 50 pieces and 250 pounds per
existing 3.1a through 3.1d as 1.6a(1)       pallet, this pallet minimum must be met     M120 Priority Mail
through a(4), respectively. Renumber        with only Standard Mail (B) parcels.        *    *      *    *     *
existing 3.2 as 1.6b and existing 3.2a      After the minimum pallet volume has         [Delete 2.0.]
through 3.2e as 1.6b(1) through 1.6b(5),    been met, Standard Mail (A) parcels
respectively.]                              may be included on the pallet or in         M130 Presorted First-Class Mail
[Add 2.0 to read as follows:]               overflow sacks.                             *    *     *     *     *
                  Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                            37991

[Revise the title of 2.0 to read as         M610    Presorted Standard Mail (A)             2.0 LETTER-SIZE PIECES—REQUIRED
follows:]                                                                                   PREPARATION
                                            1.0   BASIC STANDARDS
2.0 REQUIRED PREPARATION—                                                                   *     *    *      *      *
                                            1.1 All Mailings                                [Revise the title of 3.0 to read as
LETTER-AND CARD-SIZE PIECES
                                               All mailings at Presorted Standard           follows:]
*     *    *      *      *                  rates (3/5 and basic) are subject to
                                            specific preparation standards in 2.0           3.0 LETTER-SIZE PIECES—
[Revise the title of 3.0 to read as
                                            through 6.0 and to these general                OPTIONAL UPGRADABLE
follows:]                                                                                   PREPARATION
                                            standards (automation rate mail must be
3.0 OPTIONAL UPGRADABLE                     prepared under M810 or M820, as                 *     *     *     *     *
PREPARATION—LETTER-AND CARD-                applicable):
SIZE PIECES                                    a. Each mailing must meet the                6.0 BEDLOADED BUNDLES OF FLAT-
                                            applicable standards in E620 and in             SIZE PIECES
*     *      *    *     *
                                            M010, M020, and M030.                           6.1 Authorization
5.0   PARCELS                               *      *    *     *     *                       [In the first sentence of 6.1, change
5.1   Standards                                e. Subject to M012, all pieces eligible      ‘‘nonautomation rate’’ to ‘‘Presorted
                                            for and claimed at Nonprofit Presorted          rate.’’]
[Revise 5.1 to reflect the new 13-ounce     Standard rates must be marked                      The RCSC manager serving the post
weight limit for First-Class Mail to read   ‘‘Nonprofit Organization’’ (or                  office where the mailing is to be made
as follows:]                                ‘‘Nonprofit Org.’’ or ‘‘Nonprofit’’).           may authorize preparation of Presorted
  First-Class parcels weighing 13           Regular Presorted Standard pieces must          rate Standard Mail (A) in bundles that
ounces or less, except Priority Mail,       be marked ‘‘Presorted Standard’’ (or            are outside sacks if this preparation
must be prepared under the standards        ‘‘PRSRT STD’’) or, until January 10,            benefits the USPS. * * *
                                            2001, ‘‘Bulk Rate’’ (or ‘‘Blk. Rt.’’). Pieces
below. All Priority Mail, including any                                                     *      *     *     *    *
                                            mailed at Nonprofit or Regular Presorted
First-Class parcel weighing more than
                                            Standard rates must not bear                    M620 Enhanced Carrier Route
13 ounces must be must be prepared
                                            ‘‘ECRWSS,’’ ‘‘ECRWSH,’’ ‘‘ECRLOT,’’             Standard Mail
under the applicable standards in M120.
                                            ‘‘AUTO,’’ ‘‘AUTOCR,’’ ‘‘Single-Piece’’ or
*     *     *     *     *                                                                   1.0 BASIC STANDARDS
                                            ‘‘SNGLP’’ markings.
M200      Periodicals (Nonautomation)       *      *    *     *     *                       1.1   All Mailings
                                            1.3 Exception—Standard Mail (A)                 [Revise 1.1a and 1.1e to read as follows:]
1.0   BASIC STANDARDS
                                                                                               All nonautomation rate Enhanced
*    *      *     *     *                      When the size of the pieces in a             Carrier Route mailings are subject to
                                            Standard Mail (A) mailing job allows            these general standards (automation rate
[Delete 1.6.]                               them to qualify for preparation as either       Enhanced Carrier Route mailings must
*    *      *     *     *                   letters or automation flats and when            be prepared under M810):
                                            part of the job is prepared as palletized          a. Each mailing must meet the
3.0 SACK PREPARATION (FLAT-SIZE             automation flats, the remainder of the
PIECES AND IRREGULAR PARCELS)                                                               applicable standards in E620 and in
                                            job may be prepared as palletized flats         M010, M020, and M030.
3.1   Sack Preparation                      at Enhanced Carrier Route nonletter
                                            rates and Presorted nonletter rates if the      *      *     *     *     *
[Revise 3.1d and 3.1e to read as            number of Presorted rate pieces does not           e. Subject to M012, all pieces eligible
follows:]                                   exceed 10% of the total number of               for and claimed at Nonprofit rates must
                                            pieces in the entire mailing job.               be marked ‘‘Nonprofit Organization’’ (or
  Sack size, preparation sequence, and                                                      ‘‘Nonprofit Org.’’ or ‘‘Nonprofit’’); all
Line 1 labeling:                            Presorted rate pieces in the mailing job
                                            that exceed the 10% limit and therefore         other pieces must be marked ‘‘Presorted
*     *     *     *     *                                                                   Standard’’ (or ‘‘PRSRT STD’’), or, until
                                            may not be palletized as flats must be
  d. 3-digit: required at 24 pieces,        prepared in trays as letter mail and must       January 10, 2001, ‘‘Bulk Rate’’ (or ‘‘Blk.
optional with one six-piece package         be paid for at the letter rates. A separate     Rt.’’). In addition, basic, high-density,
minimum except under 1.5; for Line 1,       200-piece minimum volume                        and saturation rate pieces must each be
use L002, Column A.                         requirement must be met for the trayed          marked ‘‘ECRLOT,’’ ‘‘ECRWSH,’’ or
                                            letter mailing to qualify for Standard          ‘‘ECRWSS,’’ respectively. Pieces not
  e. SCF: required at 24 pieces (no                                                         claimed at the corresponding
minimum for required origin/optional        Mail (A) rates.
                                                                                            nonautomation Enhanced Carrier Route
entry SCF), optional with one six-piece     1.4 Processing Instructions                     rate must not be marked ‘‘ECRLOT,’’
package minimum except under 1.5; for                                                       ‘‘ECRWSH,’’ or ‘‘ECRWSS.’’
Line 1, use L002, Column C.                 [Change the phrase ‘‘nonautomation
                                            rate’’ to ‘‘Presorted rate’’ to read as         *      *     *     *     *
*     *     *     *     *                   follows:]
                                                                                            1.4 Exception—Standard Mail (A)
M600      Standard Mail (Nonautomation)       If a mailer prefers that the USPS not
                                            upgrade (automate) letter-size or card-         [In 1.4, change the phrase ‘‘nonletter
[Amend the title of M610. Delete 610.1.0    size pieces presented at a Presorted rate,      nonautomation rates’’ to ‘‘Presorted
and renumber 610.2.0 through 610.7.0        the mailer must identify each tray of           rates,’’ and make further clarifications to
as 610.1.0 through 610.6.0, respectively.   such mail with a facing slip or other           read as follows:]
Make other revisions as shown below         device marked ‘‘DO NOT AUTOMATE’’                  When the size of the pieces in a
for clarity and to change                   and (for letter-size mail) a tray label on      Standard Mail (A) mailing job allows
‘‘nonautomation’’ rate to ‘‘Presorted       which Line 2 includes ‘‘Non-OCR.’’              them to qualify for preparation as either
Standard’’ rate and change ‘‘Bulk Rate’’    [Revise the title of 2.0 to read as             letters or automation flats and when
to ‘‘Presorted Standard.’’]                 follows:]                                       part of the job is prepared as palletized
37992           Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

automation flats, the remainder may be       under 1.5 are included in the same            a. Only 5-digit sacks are permitted.
prepared as palletized flats at Enhanced     mailing as pallets prepared under M045,       b. Each 5-digit sack must contain a
Carrier Route nonletter rates and            at the time of acceptance the mailer        minimum of 7 pieces (smaller volume
Presorted nonletter rates if the number      must separate sacks that are overflow       not permitted). Machinable and
of Presorted rate pieces does not exceed     from palletized mail from those sacks       nonmachinable pieces may be combined
10% of the total number of pieces in the     that were prepared under the provisions     in the same sack to meet this
entire mailing job. Presorted rate pieces    of 1.5.                                     requirement. One overflow sack per 5-
in the mailing job that exceed the 10%                                                   digit ZIP Code is permitted (no piece
                                             1.3 Documentation
limit and therefore may not be                                                           minimum).
palletized as flats must be prepared in      [Amend 1.3 to read as follows:]               c. Sack Line 1 labeling: use city, state,
trays as letter mail and must be paid for      A complete, signed postage statement,     and 5-digit ZIP Code destination of
at the applicable letter rates. A separate   using the correct USPS form or an           pieces, preceded for military mail by the
200-piece minimum volume                     approved facsimile, must accompany          prefixes under M031.
requirement must be met for the trayed       each bulk mailing (a mailing that             d. Sack Line 2: ‘‘STD B 5D.’’
letter mailing to qualify for Standard       includes pieces qualifying for rates that     e. See M045 for option to place 5-digit
Mail (A) rates.                              require a 50-piece minimum volume           DSCF sacks on an SCF pallet.
                                             requirement). When presented for            [Add 1.6 to describe preparation for
*      *     *    *     *                    acceptance, documentation of postage        DDU rate mailings as follows:]
5.0 RESIDUAL PIECES                          by entry office and presort level (e.g.,.
                                             by BMC for DBMC, OBMC Presort and           1.6   DDU Rate
  Pieces not sorted under 2.0 and either
3.0 or 4.0 must be prepared as a separate    BMC Presort mail and by 5-digit ZIP            The requirements for the DDU rate are
mailing at Standard Mail (A) automation      Code for DSCF and DDU rates) is             as follows:
or Presorted rates, or at single-piece       required under P710, P720, or P730.            a. For the DDU rate, pieces must be
First-Class or Priority Mail rates, as       Except for DSCF rate mail palletized        part of a mailing of at least 50 Parcel
appropriate.                                 under the alternate preparation option      Post pieces.
                                             that requires separate documentation,          b. The pieces must be entered by the
*     *     *     *     *                    documentation is not required when the      mailer at the postal facility where the
M630 Standard Mail (B)                       correct rate is affixed to each piece, or   carrier delivers the parcels (delivery
                                             when each piece is of identical weight      unit) as defined in E652.
[Amend 1.0 to add preparation
                                             and the pieces are separated by zone           c. There are no minimum sacking or
requirements in 1.3–1.6 for new
                                             and within each zone are grouped by         pallet preparation standards. DDU rate
destination entry Parcel Post rates,
                                             pieces subject to the same combination      mailings may be bedloaded, sacked,
introduce new drop ship markings,
                                             of rates. DSCF rate mail palletized under   placed directly on pallets or in pallet
eliminate the ‘‘Catalog’’ marking, and
                                             the alternate preparation option in         boxes on pallets. Machinable and
make other marking changes to read as
                                             M045 must submit the detailed               nonmachinable pieces may be combined
follows:]
                                             documentation required in M045.             in the same sack or on the same pallet
1.0   PARCEL POST                            [Add 1.4 for DSCF mailings as follows:]     (including pallet boxes on pallets).
                                             1.4 DSCF Rate                                  d. If the delivery unit serves more
1.1 Marking
                                                                                         than one 5-digit ZIP Code, the pieces
[Amend 1.1 to provide for identifying          To qualify for the DSCF rate, pieces      must be separated by 5-digit ZIP Code
Parcel Post pieces as follows:]              for the same SCF area (L002, Column C       when unloaded. Refer to the Drop
   Each piece mailed at the DBMC,            or L005) must be sorted to 5-digit ZIP      Shipment Product available from the
DSCF, or DDU Parcel Post rates must be       Code destinations either in sacks under     National Customer Support Center (see
marked ‘‘Parcel Post’’ or ‘‘PP’’ and         1.5 or directly on pallets or in pallet     G043) and Exhibits E652.6.0 and
‘‘Drop Ship’’ or ‘‘D/S’’ under M012. An      boxes on pallets under M041 and M045.       E652.7.0 to determine the location of the
exception is that until January 10, 2000,    Pieces must be part of a mailing of at      delivery unit, whether it serves more
DBMC rate mail may be marked ‘‘DBMC          least 50 Parcel Post pieces. They must      than one 5-digit ZIP Code, and whether
Parcel Post’’ or ‘‘DBMC PP.’’ All other      be entered at the designated SCF facility   it can handle pallets. There is a charge
Parcel Post rate pieces may bear the         under L005 that serves the 5-digit ZIP      for the Drop Shipment Product.
‘‘Parcel Post’’ or ‘‘PP’’ markings, and      Code destinations of the pieces except         e. If mail is sacked it must be labeled
effective January 10, 2000, must bear the    when palletized and entry is required at    as follows.
‘‘Parcel Post’’ or ‘‘PP’’ marking under      a BMC (see Exhibit E652.5.0). The DSCF         Line 1: City, state, and 5-digit ZIP
M012. Pieces not marked with the             rate is not available for palletized mail   Code destination, preceded for military
appropriate drop shipment marking as         for facilities that are unable to handle    mail by the prefixes under M031.
required are treated as single-piece rate    palletized mailings. Refer to the Drop         Line 2: ‘‘STD B 5D.’’
Parcel Post and are subject to additional    Shipment Product available from the
                                             National Customer Support Center            2.0 BOUND PRINTED MATTER
postage as necessary.
                                             (NCSC) (see G043) and Exhibit E652.6.0      *     *    *     *     *
1.2 Separation                               and Exhibit E652.7.0 to determine if the
[Amend 1.2 to add requirements for the       facility serving the 5-digit destination    2.3   Marking
DSCF and DDU rate categories as              can handle pallets. There is a charge for   [Revise 2.3 to provide for using new
follows:]                                    the Drop Shipment Product.                  Bound Printed Matter markings as
   Parcel Post pieces must be separated      [Add 1.5 to describe sacking                follows:]
by zones when presented for acceptance       requirements for DSCF mailings as             Each piece claimed at single-piece
unless either the correct postage is         follows:]                                   Bound Printed Matter rates must be
affixed to each piece or the mailing is                                                  marked ‘‘Bound Printed Matter’’ under
prepared under 8.0, or presented under       1.5 DSCF Sack Preparation                   M012. Each piece claimed at presorted
a special postage payment system under         Sacking requirements for DSCF rates       Bound Printed Matter rates must be
P710, P720, or P730. If sacks prepared       are as follows:                             marked ‘‘Bound Printed Matter’’ and
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                        37993

either ‘‘Presorted’’ (or ‘‘PRSRT’’) or      5.2   Marking                                same time. Documentation of postage is
‘‘Presorted Standard’’ (or ‘‘PRSRT STD’’)   [Revise 5.2 to add a reference to M012       not required if the correct rate is affixed
under M012. Pieces not marked as            to read as follows:]                         to each piece or if each piece is of
required are treated as single-piece rate     Each piece of Library Mail must be         identical weight and the pieces are
Parcel Post, subject to additional          marked ‘‘Library Rate’’ or ‘‘Library         separated by rate when presented for
postage as necessary.                       Mail’’ under M012. Pieces not marked         acceptance. Combined mailings of
[Delete 2.4. Renumber existing 2.5          as required are treated as single-piece      Periodicals publications also must be
through 2.7 as 2.4 through 2.6,             Parcel Post, subject to additional           documented under M200.
respectively.]                              postage as necessary.                        *     *    *      *    *
3.0 CARRIER ROUTE BOUND                     *     *     *     *     *                    3.0   PERIODICALS
PRINTED MATTER
                                            M800    All Automation Mail                  3.1 Tray Preparation
*     *    *    *       *
                                            M810    Letter-Size Mail                     [Amend 3.1a to read as follows:]
3.2   Marking                                                                               Tray size, preparation sequence, and
                                            1.0   BASIC STANDARDS                        Line 1 labeling:
[Revise 3.2 to eliminate the markings                                                       a. 5-digit/scheme: optional, but 5-digit
                                            *     *    *     *     *
‘‘Blk. Rt.’’ and ‘‘CATALOG’’ as follows:]                                                trays required for rate eligibility (150-
                                            [Amend 1.2 to delete the reference to 3/
   Each piece claimed at carrier route      5 rates and to include information on        piece minimum); overflow allowed; for
Bound Printed Matter rates must be          mail qualifying for carrier route            Line 1, for 5-digit trays, use 5-digit ZIP
marked ‘‘Bound Printed Matter’’ and         automation rates. Amend 1.2 and 1.3 to       Code destination of pieces, preceded for
‘‘Carrier Route Presort’’ (or ‘‘Bound       move information about postage               military mail by the prefixes under
Printed Matter’’ and ‘‘CAR–RT SORT’’)       statements and documentation from 1.2        M031; for Line 1, for optional 5-digit
under M012. The mailer also may opt to      to 1.3.]                                     scheme trays, use destination shown in
include the marking ‘‘Presorted’’ (or                                                    the current City State File.
‘‘PRSRT’’) or ‘‘Presorted Standard’’ (or    1.2   Mailings
                                                                                         *      *     *    *     *
‘‘PRSRT STD’’) with the above required        The requirements for mailings are as
markings under M012. Residual pieces        follows:                                     M820      Flat-Size Mail
in a carrier route Bound Printed Matter       a. General. All pieces in a mailing        1.0 BASIC STANDARDS
mailing may have the ‘‘Carrier Route        must meet the standards in C810 and
Presort’’ or ‘‘CAR–RT SORT’’ marking if                                                  *     *    *      *   *
                                            must be sorted together to the finest        [Amend 1.2 to add a reference to 5-digit
the number of residual pieces to any        extent required. The definitions of a
single 5-digit ZIP Code area does not                                                    and 3-digit rates. Amend 1.2 and 1.3 to
                                            mailing and permissible combinations         move information about postage
exceed 5% of the total qualifying carrier   are in M011.
route rate pieces addressed to that 5-                                                   statements and documentation from 1.2
                                              b. First-Class. A single automation        to 1.3.]
digit area. The residual pieces must be     rate First-Class mailing may include
separated from the qualifying pieces        pieces prepared at carrier route, 5-digit,   1.2 Mailings
when presented to the USPS. Pieces not      3-digit, and basic automation rates.           All pieces in a mailing must meet the
marked as required are treated as single-     c. Periodicals. A single automation        standards in C820 and must be sorted
piece rate Parcel Post and subject to       rate Periodicals mailing may include         together to the finest extent required.
additional postage as necessary.            pieces prepared at 5-digit, 3-digit, and     First-Class Mail and Standard Mail (A)
*      *      *    *   *                    basic automation rates.                      mailings may include pieces prepared at
3.7   Residual Pieces                         d. Standard Mail (A). Pieces prepared      automation 3/5 and basic rates, as
                                            to qualify for carrier route automation      applicable. Periodicals mailings may
[Amend the third sentence of 3.7 by         rates must be prepared as a separate         include pieces prepared at automation
replacing the phrase ‘‘bulk Bound           mailing (meet a separate minimum             5-digit, 3-digit, and basic rates, as
Printed Matter’’ with ‘‘presorted Bound     volume requirement) from pieces              applicable. The definitions of a mailing
Printed Matter.’’]                          prepared to qualify for 5-digit, 3-digit,    and permissible combinations are in
4.0   SPECIAL STANDARD MAIL                 and basic automation rates.                  M011.
*     *    *    *       *                   1.3   Documentation                          1.3 Documentation
4.2   Marking                                 A complete, signed postage statement,      [Insert the following after the first
                                            using the correct USPS form or an            sentence in 1.3:]
[Revise 4.2 to add the marking ‘‘PRSRT’’    approved facsimile, must accompany              * * * Mailers may use a single
as follows:]                                each mailing and must be supported by        postage statement and a single
   Each piece claimed at Special            documentation produced by PAVE-              documentation report for all rate levels
Standard Mail rates must be marked          certified (or, except for Periodicals,       in a single mailing. * * *
‘‘Special Standard Mail’’ or ‘‘SPEC         MAC-certified) software or by                *     *     *     *    *
STD’’ under M012. Each piece claimed        standardized documentation under
at presorted Special Standard Mail rates    P012. Mailers may use a single postage       3.0   PERIODICALS
also must be marked ‘‘Presorted’’ or        statement and a single documentation         *     *      *    *        *
‘‘PRSRT’’ under M012. Pieces not            report for all rate levels in a single
marked as required are treated as single-   mailing. Standard Mail (A) mailers may       3.2 Sack Preparation
piece Parcel Post, subject to additional    use a single postage statement and a         [Revise 3.2b and 3.2c to read as follows:]
postage as necessary.                       single documentation report for both an        Sack size, preparation sequence, and
*     *     *    *     *                    automation carrier route mailing and a       Line 1 labeling:
                                            mailing containing pieces prepared at 5-     *     *     *     *     *
5.0   LIBRARY MAIL                          digit, 3-digit, and basic automation rates     b. 3-digit: required at 24 pieces;
*     *    *    *       *                   as applicable, submitted for entry at the    optional with one six-piece package
37994              Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

minimum except under 1.7; for Line 1,        the applicable single-piece First-Class           the package, tray, sack, or pallet levels
use L002, Column A.                          Mail or Priority Mail rate based on the           required by 2.2 and shown below:
  c. SCF: required at 24 pieces (no          weight of the piece is applied, or an
minimum for required origin/optional         applicable Standard Mail (B) rate is                          Sortation level               Abbreviation
entry SCF); optional with one six-piece      applied, whichever is lower. If the piece
package minimum except under 1.7; for        weighs 16 ounces or more, the Standard              *          *         *              *           *
Line 1, use L002, Column C.                  Mail (B) rate is applied.                         SCF [pallets, Periodicals flats,      n/a
                                                                                                Bound Printed Matter].
*     *    *     *     *                     *     *     *     *    *
P   Postage and Payment Methods              P012       Documentation                              *            *            *       *           *
P000       Basic Information                 *      *      *      *    *                       *       *       *      *          *
P010       General Standards                 2.0 STANDARDIZED
                                                                                               P013 Rate Application and
P011       Payment                           DOCUMENTATION ( FIRST-CLASS
                                                                                               Computation
                                             MAIL, PERIODICALS, AND
1.0 PREPAYMENT AND POSTAGE                   STANDARD MAIL (A)                                 1.0 BASIC STANDARDS
DUE                                                                                            *       *       *      *          *
                                             *      *      *      *    *
1.1 Prepayment Conditions                    2.3 Rate Level Column Headings                    1.4 Affixing Postage—Single-Piece
[Revise 1.1e to read as follows:]            [Amend 2.3a and 2.3b to reflect the new           Rate Mailings
  The mailer is responsible for proper
                                             separate 5-digit and 3-digit presort rate         [Amend the first sentence of 1.4 by
payment of postage. Postage on all mail
                                             categories for Periodicals mail as                removing ‘‘or Standard Mail (A)’’ to read
must be fully prepaid at the time of
                                             follows:]                                         as follows:]
mailing, except as specifically provided       The actual name of the rate level (or
by standard for:                                                                                  In a postage-affixed single-piece rate
                                             corresponding abbreviation) is used for           Express Mail, First-Class Mail, or
*     *    *      *    *                     column headings required by 2.2 and               Priority Mail mailing, or in any postage-
  e. Keys and identification devices         shown below:                                      affixed Standard Mail (B) mailing, the
returned to owners (see E120 and E130).        a. Automation First-Class Mail,                 mailer must affix to each piece a value
*     *    *      *    *                     Periodicals, and Standard Mail (A):               in adhesive stamps, precanceled stamps,
1.5 Shortpaid Mail-Basic Standards                                                             or meter impressions equal to at least
                                                           Rate                 Abbreviation
                                                                                               the postage required for the piece. * * *
[Amend the first sentence of 1.5 by
removing ‘‘and nonstandard single-           Carrier Route [First-Class Mail    CB             *      *    *     *     *
piece Standard Mail (A)’’ to read as           letters/cards].
                                             5-Digit [First-Class Mail let-     5B             2.0 RATE APPLICATION—EXPRESS
follows:]                                      ters/cards, Periodicals let-                    MAIL, FIRST-CLASS MAIL, AND
  Mail of any class, including mail            ters and flats, and Standard                    PRIORITY MAIL
indicating special services (except            Mail letters].
Express Mail, registered mail, and                                                             *     *    *     *     *
                                             3-Digit [First-Class Mail let-     3B
nonstandard First-Class Mail), which is        ters/cards, Periodicals let-
                                                                                               [Insert new 2.6 to read as follows:]
received at either the office of mailing       ters and flats, and Standard                    2.6 Keys and Identification Devices
or office of address without enough            Mail letters].
postage is marked to show the total          3/5[First-Class Mail and           3/5B              Keys and identification devices
deficiency of postage and fees. * * *          Standard Mail flats].                           weighing 13 ounces or less are charged
                                             Basic [letters/cards and flats]    BB             the First-Class Mail rates per ounce or
*     *     *     *    *                                                                       fraction thereof in accordance with 2.3,
1.8 Shortpaid Nonstandard Mail                 b. Presorted First-Class Mail,                  plus a $0.30 fee. Keys and identification
                                             nonautomation presorted Periodicals,              devices weighing more than 13 ounces
[Amend 1.8 by removing ‘‘nonstandard         and Standard Mail (A):
Single-Piece Standard Mail’’ to read as                                                        but no more than 2 pounds are mailed
follows:]                                                                                      at the 2-pound Priority Mail rate in
                                                           Rate                 Abbreviation   accordance with 2.4, plus a $0.30 fee.
  Shortpaid nonstandard First-Class
Mail is returned to the sender.              Presorted [First-Class Mail let-   Presort        *     *     *     *    *
*     *     *    *     *                       ters/cards, flats, and par-                     4.0 RATE APPLICATION—
                                               cels].
2.0 MAILABLE MATTER IN OR ON                 5-Digit [Periodicals letters,      5D
                                                                                               STANDARD MAIL (A)
PRIVATE MAIL RECEPTACLES                       flats, and parcels].                            [Remove 4.1 and 4.2 and redesignate
                                             3-Digit [Periodicals letters,      3D             current 4.3 as the text of 4.0. Amend 4.0
*      *      *      *   *                     flats, and parcels].                            to revise the breakpoints as follows:]
2.3 Partial Distribution                     3/5 [Standard Mail letters,        3/5
                                               flats, and parcels].
                                                                                                 Standard Mail (A) rates are based on
[Amend 2.3 to reflect elimination of         Basic [letters/cards and flats]    BS             the weight of the pieces and are applied
single-piece Standard Mail (A) rates to                                                        differently to pieces weighing less than
read as follows:]                            *      *      *      *    *                       or equal to a ‘‘breakpoint’’ (rounded to
   If there is a distribution of pieces to                                                     four decimal places) and those weighing
some, but not all, addresses on a route,     2.4 Sortation Level                               more, as follows:
pieces are returned to the delivery unit     [Amend 2.4 by deleting row ‘‘Unique 3-              a. The appropriate minimum per-
for use in computing the postage due.        Digit [Periodicals]’’ and ‘‘3DGU’’ and by         piece rate applies to Enhanced Carrier
First-Class Mail rates are applied to        revising the SCF sortation level to read          Route rate pieces weighing 0.2066
matter that would require First-Class        as follows:]                                      pound (3.3062 ounces) or less; Regular
Mail postage if mailed. For other matter,      The actual sortation level (or                  Presorted and automation rate pieces
if the piece weighs less than 16 ounces,     corresponding abbreviation) is used for           weighing 0.2068 pound (3.3087 ounces)
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                     37995

or less; Nonprofit Enhanced Carrier       9.2 Total Postage—Presorted Bound           5.0   MAILINGS
Route rate pieces weighing 0.2069         Printed Matter
                                                                                      5.1 Notification of Metered Mailings
pound (3.3103 ounces) or less; and                                                    Presented in Bulk
Nonprofit Presorted and automation rate   [In 9.2 revise the term ‘‘bulk Bound
pieces weighing 0.2055 pound (3.2873      Printed Matter’’ to read ‘‘presorted        [Amend the names of the rates in the
ounces) or less.                          Bound Printed Matter.’’]                    first sentence of 5.1 to read as follows:]
                                          *     *     *     *    *                       Mailers who want to present
  b. A rate determined by adding the                                                  Presorted First-Class Mail, Standard
appropriate fixed per-piece charge and    9.4 Computing Affixed Postage—              Mail (A), Parcel Post in bulk quantities,
the corresponding variable per-pound      Individual Pieces                           presorted Bound Printed Matter, Carrier
charge (based on the weight of the                                                    Route Bound Printed Matter, or
piece) applies to pieces weighing more    [In the first and second sentences of 9.4
                                          revise the term ‘‘bulk Bound Printed        Presorted Special Standard Mail using
than 0.2066 pound (3.3062 ounces) at                                                  metered postage must complete Form
                                          Matter’’ to read ‘‘presorted Bound
Enhanced Carrier Route rates; weighing                                                3615. * * *
                                          Printed Matter.’’]
more than 0.2068 pound (3.3087                                                        *      *    *     *     *
ounces) at Regular Presorted and          9.5    Permit Imprint
automation rates; weighing more than                                                  5.4 Place of Mailing
0.2069 pound (3.3103 ounces) at           [In the first sentences of 9.5a and 9.5b    [Amend 5.4a by removing ‘‘Standard
Nonprofit Enhanced Carrier Route rates;   revise the term ‘‘bulk Bound Printed        Mail (A)’’ to read as follows:]
and weighing more than 0.2055 pound       Matter’’ to read ‘‘presorted Bound             Except as noted below, metered mail
(3.2873 ounces) at Nonprofit Presorted    Printed Matter.’’]                          must be deposited at a post office
and automation rates.                     P014       Refunds and Exchanges            acceptance unit, retail unit, or other
                                                                                      location designated by the postmaster of
*     *     *    *     *                  *      *      *    *    *                   the licensing post office (i.e., the post
5.0 RATE APPLICATION—                     2.0    POSTAGE AND FEES REFUNDS             office shown in the meter stamp) and
STANDARD MAIL (B)                                                                     may not be given to a delivery employee
                                          *      *      *    *    *                   or deposited in a street collection box,
5.1   Basis                               2.3    Torn or Defaced Mail                 mailchute, receiving box, cooperative
                                                                                      mailing rack, or other mail collection
   Postage is based on the rate that      [Amend 2.3 by removing ‘‘Single-Piece       receptacle. Exceptions to this general
applies to the weight (postage)           Standard Mail’’ as follows:]                standard are listed below.
increment of each address piece, and                                                     a. Express Mail, Priority Mail (in a
                                            If First-Class Mail or Standard Mail
where applicable, on the zone to which                                                weight category for which rates do not
                                          (B) is torn or defaced during USPS
the piece is addressed.                                                               vary by zone), or single-piece rate First-
                                          handling so that the addressee or
*     *       *    *     *                intended delivery point cannot be           Class Mail, may be deposited in any
[Delete current 5.6 and renumber          identified, the sender may receive a        street collection box or such other place
current 5.7 as 5.6. Revise renumbered     postage refund. This applies only when      where mail is accepted and that is
5.6 to change the name of the rate from   the failure to process and/or deliver is    served by the licensing post office.
‘‘bulk’’ to ‘‘presorted’’ to read as      the fault of the USPS. Where possible,      *      *    *     *     *
follows:]                                 the damaged item is returned with the
                                                                                      P040 Permit Imprints
                                          postage refund.
5.6   Presorted Bound Printed Matter                                                  *     *    *     *     *
                                          *      *    *     *     *
  The presorted Bound Printed Matter      P030 Postage Meters and Meter               4.0 INDICIA Format
rate has a per-piece charge and a per-    Stamps                                      4.1 Basic Standard
pound charge. The minimum postage
rate for an addressed piece is one unit   1.0    BASIC INFORMATION                    *     *    *     *     *
of the per-piece charge plus the per-     *      *      *    *    *                   Exhibit 4.1a Indicia Formats for
pound charge for an addressed piece                                                   Mailgram and Official Mail
                                          1.5    Reply Postage
weighing 1 pound.                                                                     [Under the heading ‘‘Standard Mail (A)
*     *     *    *     *                  [Revise 1.5 to reflect the new 13-ounce     Official Mail,’’ delete the first example,
                                          weight limit for First-Class Mail to read   in the second example change ‘‘BULK
8.0 COMPUTING POSTAGE—                    as follows:]                                RATE’’ to ‘‘PRSRT STD,’’ and in the
STANDARD MAIL (A)
                                            Meter stamps may prepay reply             third example change ‘‘BULK RATE
[Remove 8.1 and renumber current 8.2      postage on Express Mail; Priority Mail      AUTOCR’’ to ‘‘PRESORTED
through 8.5 as 8.1 through 8.4,           when the rate is the same for all zones;    STANDARD AUTOCR,’’ add a new
respectively; no other changes.]          First-Class postcards, letters, and flats   example that reads ‘‘PRSRT STD,
                                          up to a maximum of 13 ounces; single-       AUTO, POSTAGE AND FEES PAID,
*    *     *     *     *
                                          piece rate Special Standard Mail; and       AGENCY NAME, PERMIT NO. G–999.’’]
9.0 COMPUTING POSTAGE—                    Library Mail, under the following           [Under the heading ‘‘Standard Mail (B)
STANDARD MAIL (B)                         conditions:                                 Official Mail,’’ in the third example
                                          *     *     *     *     *                   change ‘‘BULK RATE BOUND PRINTED
9.1   Mailing Weight                                                                  MATTER’’ to ‘‘PRSRT BOUND
                                            c. Postage on Priority Mail over 13,      PRINTED MATTER.’’]
[In 9.1a revise the term ‘‘bulk Bound     ounces, single-piece rate Special
Printed Matter’’ to read ‘‘presorted      Standard Mail, or Library Mail may be       Exhibit 4.1b Indicia Formats for First-
Bound Printed Matter.’’]                  paid only with meter-stamped address        Class Mail and Standard Mail
[Revise the title of 9.2 to read as       labels.                                     [Under the heading ‘‘Standard Mail
follows:]                                 *     *     *     *     *                   (A),’’ in the first example change ‘‘BULK
37996              Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

RATE ECRWSS’’ to ‘‘PRESORTED                 ‘‘From Standard Mail (A).’’ For permit        if authorized by the RCSC serving the
STANDARD ECRWSS,’’ in the second             imprint mail there must be at least 200       mailing office.
example change ‘‘BULK RATE                   pieces, except when the pieces are part          b. Standard Mail (B). The mailer is
AUTOCR’’ to ‘‘PRESORTED                      of a larger mailing job and are submitted     responsible for proper postage payment.
STANDARD AUTOCR,’’ in the third              for acceptance along with the mail and        Subject to the corresponding standards,
example change ‘‘BLK RT AUTO’’ to            a Standard Mail (A) postage statement         postage for single-piece rate Standard
‘‘PRSRT STD AUTO,’’ in the seventh           for the other pieces in the same mailing      Mail (B) may be paid by any method.
and eighth examples change ‘‘BULK            job.                                          Postage for bulk rate (rate has minimum
RATE’’ to ‘‘PRESORTED STANDARD,’’                                                          mailing volume requirement) or presort
delete the ninth example.]                   3.0    PRIORITY MAIL RATES
                                                                                           rate Standard Mail (B) must be paid
[Under the heading ‘‘Standard Mail           *     *    *     *     *                      with meters or permit imprints. Postage-
(B),’’ in the second example delete the      [Insert new 3.4 to read as follows:]          affixed pieces must bear the correct
word ‘‘BLK RT,’’ in the third example        3.4 Residual Standard Mail (A)                postage unless excepted by standard. A
change ‘‘BULK PARCEL POST’’ to               Subject to Priority Mail Rates                permit imprint may be used for mailings
‘‘PARCEL POST,’’ add a fifth example                                                       that contain nonidentical-weight pieces
that reads ‘‘PP D/S, U.S. POSTAGE               Mailers who have permit imprint
                                                                                           only under P710, P720, or P730. Permit
PAID, NEW YORK, NY, PERMIT NO.               pieces weighing over 13 ounces, but less
                                                                                           imprints may be used for identical
1,’’ add a sixth example that reads          than 16 ounces, that do not qualify for
                                                                                           weight pieces provided that the mail
‘‘PRESORTED BOUND PRINTED                    Standard Mail (A) rates, but that are
                                                                                           can be separated into groups that each
MATTER, U.S. POSTAGE PAID, NEW               prepared as Standard Mail (A), must pay
                                                                                           contain pieces subject to the same zone
YORK, NY, PERMIT NO. 1.’’]                   Priority Mail postage for such pieces.
                                                                                           and same combination of rates (e.g., all
*      *     *    *    *                     Mailpieces paid with meters or permit
                                                                                           are zone 4, Inter-BMC, with a BMC
                                             imprints must re-envelope or otherwise
P100       First-Class Mail                                                                Presort discount and a barcode
                                             prepare the pieces so that when mailed
                                                                                           discount). Identical weight permit
*      *      *     *    *                   they bear only the appropriate Priority
                                                                                           imprint mail also may be mailed under
                                             Mail markings, ancillary service
2.0    SINGLE-PIECE RATE                                                                   P710, P720, or P730.
                                             endorsements, and ACS codes, and do
*     *    *     *     *                     not bear Standard Mail (A) markings,          *      *    *      *    *
[Insert new 2.6 to read as follows:]         endorsements, or ACS codes. Mailpieces        [Delete 1.3.]
                                             paid with permit imprints for which           [Revise title of 2.0 and clarify the
2.6 Residual Standard Mail (A)                                                             language in 2.1 to read as follows:]
                                             mailers do not desire to receive Priority
Subject to First-Class Rates
                                             Mail service may enter the mailpieces
   Mailers who have pieces weighing 13                                                     2.0 Standard Mail (A)—Presorted and
                                             ‘‘as is’’ (i.e., bearing the Standard Mail
ounces or less that do not qualify for                                                     Enhanced Carrier Route
                                             (A) markings and endorsements), under
Standard Mail (A) rates, but that are        the following conditions:                     2.1 Identical-Weight Pieces
prepared as Standard Mail (A), must pay         a. Additional markings and/or postage
single-piece First-Class Mail postage for    must not be added to these pieces.               Mailings of identical-weight pieces in
such pieces. If mailers do not desire to        b. The appropriate Priority Mail rates     a Presorted or Enhanced Carrier Route
receive First-Class Mail service for such    must be paid by completing Form 3600–         mailing may have postage affixed to
pieces they may enter the mailpieces         PM, Postage Statement—Priority Mail           each piece at the exact rate for which
‘‘as is’’ (i.e., bearing the Standard Mail   Permit Imprint. The pieces must be            the piece qualifies, or each piece in the
(A) markings and endorsements), under        recorded on this postage statement on         mailing may have postage affixed at the
the following conditions:                    the line titled ‘‘Pieces From Standard        lowest rate applicable to pieces in the
   a. Additional markings and/or postage     Mail (A)’’ in the postage calculation         mailing or in the mailing job.
must not be added to these pieces.           section. For permit imprint mail there        Alternatively, a nondenominated
   b. Mail bearing metered or                must be at least 200 pieces, except when      precanceled stamp may be affixed to
precanceled stamp postage must pay the       the pieces are part of a larger mailing job   every piece in the mailing or mailing
difference between the postage affixed       and are submitted for acceptance along        job, or each piece may bear a permit
at the Standard Mail (A) rates and the       with the mail and a Standard Mail (A)         imprint. If exact postage is not affixed,
single-piece First-Class Mail rates by       postage statement for the other pieces in     all additional postage must be paid at
means of an advance deposit account or       the same mailing job.                         the time of mailing with an advance
by affixing a meter strip for the                                                          deposit account or with a meter strip
                                             *      *       *     *     *
appropriate amount to Form 3600–P,                                                         affixed to the required postage
Postage Statement—(First-Class Mail          P600    Standard Mail                         statement. If exact postage is not affixed,
Postage Affixed. The number of pieces,                                                     documentation meeting the standards in
                                             1.0    BASIC INFORMATION
rate, and any surcharge information                                                        P012 must be submitted to substantiate
must be entered in Part C on the reverse     1.1 Payment Method                            the additional postage unless the pieces
side of Form 3600–P in the space             [Amend 1.1 to read as follows:]               are identical weight and separated by
provided under the special heading             Standard Mail postage must be paid          rate when presented for acceptance.
‘‘From Standard Mail (A)’’.                  using one of the following methods:           *     *     *     *     *
   c. Mail bearing permit imprints must        a. Standard Mail (A). The mailer is         [Revise the heading of 3.0 to read as
pay the appropriate single-piece First-      responsible for proper postage payment.       follows:]
Class rates by completing Form 3600–R,       Postage for Standard Mail (A) must be
Postage Statement—(First-Class Mail          paid with meters, permit imprints, or         3.0 STANDARD MAIL (A)—
Permit Imprint. The number of pieces,        precanceled stamps. Postage-affixed           AUTOMATION RATES
rate, and any surcharge information          pieces must bear the correct postage          *    *     *     *     *
must be entered in Part C on the reverse     unless excepted by standard. A permit
side of Form 3600–R in the space             imprint may be used for mailings that         P710 Manifest Mailing System (MMS)
provided under the special heading           contain nonidentical-weight pieces only       *    *     *     *     *
                 Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                      37997

3.0    Keyline                                facility. Any material classified as       2.2 Metered Pieces Standard Mail (A)
                                              hazardous under C023 may not be
3.1    Letter-Size Mail                                                                  [Revise the first sentence of 2.2 to
                                              carried in the same vehicle as PVDS
*      *    *      *      *                                                              change the term ‘‘nonautomation’’ to
                                              mailings.
                                                                                         ‘‘Presorted.’’ Delete the last sentence.]
Exhibit P710.3.1       Letter-Size Keyline    2.12    Separation of PVDS Mailings           Metered pieces in a combined mailing
Information                                                                              must bear postage at a Presorted or
                                              [Renumber 2.12d and 2.12e as 2.12e and     automation rate for which the pieces are
[Amend the postage indicia in the upper       2.12f, respectively. Add new 2.12d to
right corner of the second (Standard                                                     eligible. Additional postage due for
                                              provide for separation of Parcel Post at   metered pieces in a combined mailing is
Mail (A))sample mailpiece by replacing
                                              different destination entry rates in the   deducted from the mailer’s postage due
‘‘BULK RATE’’ with ‘‘PRSRT STD’’ to
                                              same shipment as follows:]                 advance deposit account.
read as follows:]
PRSRT STD                                       PVDS mailings must be kept separate:     *     *     *     *     *
U.S. POSTAGE PAID                             *      *     *    *      *
                                                                                         2.4 Precanceled Pieces Standard Mail
NEW YORK, NY                                    d. When a vehicle contains a             (A)
PERMIT NO. 1                                  shipment of Standard Mail (B) claiming
*     *     *     *    *                      more than one destination entry            [Amend 2.4 by deleting the last
                                              discount for deposit at the same postal    sentence.]
P750 Plant-Verified Drop Shipment             facility, the mail eligible for each       *    *     *   *     *
(PVDS)
                                              destination entry discount must be
*      *    *      *      *                                                              3.0 PRODUCING THE COMBINED
                                              physically separated.
                                                                                         MAILING
2.0    PROGRAM PARTICIPATION                  *      *     *    *      *
                                                                                         *     *     *      *     *
*      *    *      *      *                   5.0    POSTAGE
                                                                                         3.3 Rejected Pieces
2.11    Mailer Transport of PVDS              *      *    *    *    *
                                                                                         [In 3.3a, change the phrase ‘‘Standard
[Revise 2.11 to provide for additional        5.3    Standard Mail (B)                   Mail (A) 3/5 presort rate’’ to ‘‘3/5
DSCF and DDU rate Parcel Post mailings                                                   Presorted Standard Mail (A) rate as
as follows:]                                  [Revise 5.3 to explain zone-based
                                              postage computation as follows:]           follows:’’]
   Using any means of transportation,                                                       Pieces rejected for any reason by the
including Express Mail or Priority Mail         Postage for Standard Mail (B) PVDS       mailer’s automated sorting system and
drop shipment, the mailer must                must be paid with meter stamps or with     pulled out of the combined mailing
transport PVDS mailings from the origin       a permit imprint under the applicable      stream must be identified by the mailer,
plant to the destination postal facility or   authorization at the post office serving   specifically accounted for in
facilities. The mailer must not transport     the mailer’s location. Postage for DBMC    documentation, and:
PVDS mailings on the same vehicle with        mailings is computed from the BMC
                                                                                            a. If postage-affixed, bear postage or
shipments not entered as PVDS. For            parent post office.
                                                                                         have additional postage affixed to equal
Standard Mail PVDS, the mailer must           *    *     *     *     *                   a rate no lower than the correct
meet the scheduling standards for mail                                                   Presorted First-Class rate or 3/5
deposit at destination entry postal           P760 First-Class or Standard Mail
                                              Mailings with Different Payment            Presorted Standard Mail (A) rate for
facilities. If a vehicle contains mail paid                                              letters, as applicable.
at the Parcel Post destination entry          Methods
rates, the applicable standards for                                                      *      *     *     *     *
                                              *      *    *    *    *
scheduling of deposits and unloading of                                                  [Revise entire R module to read as
vehicles apply to any other mail on the       2.0    POSTAGE                             follows:]
same vehicle for the same destination         *      *    *    *    *                    BILLING CODE 7710–12–P
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                    Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                            38029




BILLING CODE 7710–12–C                               more than the maximum amount                 using special handling; only one special
S     Special Services                               covered by the fee paid.                     handling fee is charged for the parcel.
S000        Miscellaneous Services                   *    *    *      *    *                      *    *     *     *    *

S010        Indemnity Claims                         4.0    ADJUDICATION                          S900 Special Postal Services

*       *      *     *        *                      4.1    Initial                               S910 Security and Accountability

2.0 GENERAL FILING                                   [Amend 4.1 to read as follows:]              S911 Registered Mail
INSTRUCTIONS                                            The St. Louis Accounting Service          *      *      *    *      *
                                                     Center (ASC) adjudicates and pays or
2.1     Who May File                                 disallows all domestic claims except the     2.0 FEES AND LIABILITY
[Insert new 2.1d to read as follows:]                initial adjudication of domestic             *      *      *    *      *
   A claim may be filed by:                          unnumbered insured claims that are not
                                                                                                  2.3 Postal Insurance
                                                     bulk insured service and those appealed
*     *     *    *     *
                                                     under 4.3. Domestic unnumbered               [Amend 2.3 to read as follows:]
   d. Only the sender, for bulk Insured              insured claims, except for bulk insured        Postal insurance is provided for
service mail.                                        service, are adjudicated and paid locally    articles with a value of at least $0.01 up
2.2     When to File                                 at the post office accepting the claims.     to a maximum insured value of $25,000.
                                                     *     *     *     *     *                    Insurance is included in the fee. Postal
[Amend the chart to add the following:]                                                           insurance is not available for articles
                                                     [Insert new 6.0 to read as follows:]
                                                                                                  with no value ($0.00).
                              When to file (from     6.0    BULK INSURED CLAIMS
                               mailing date)                                                      *     *     *     *    *
Mail type or service                                    Mailers authorized to mail at bulk
                          No sooner       No later                                                S913       Insured Mail
                            than           than      insured rates under S913 will receive
                                                     instructions for filing claims from their    1.0 BASIC INFORMATION
Bulk Insured ..........   30 days ...    6 months    postmaster or designee, including            1.1    Description
                                                     specific claim numbers to be used when
    *           *         *          *         *     filing claims. At some time in the future,   [Amend 1.1 to add a reference to the
                                                     electronic filing of indemnity claims        bulk insurance discount read as
*       *      *     *        *                      will become mandatory. Prior to              follows:]
                                                     mandatory electronic claims filing,             Retail insured mail provides up to
2.11     Payable Claim
                                                     customers will be provided with the          $5,000 indemnity coverage for a lost,
[Amend 2.11a and add new 2.11n to                    format instructions for the new              rifled, or damaged article, subject to the
read as follows:]                                    electronic (soft copy) of Form 3877,         standards for the service and payment of
  Insurance for loss or damage to                    Firm Mailing Book for Accountable            the applicable fee. A bulk insurance
insured, registered, or COD mail within              Mail, and instructions for electronic        discount is available for insured articles
the amount covered by the fee paid or                filing of indemnity claims.                  entered by authorized mailers who meet
within the indemnity limits for Express              *     *     *     *     *                    the criteria in 3.0. No record of insured
Mail as explained in 2.12 is payable for                                                          mail is kept at the office of mailing.
the following:                                       S070     Mixed Classes                       Insured mail service provides the sender
  a. Actual value of lost articles at the            1.0    BASIC INFORMATION                     with a mailing receipt. For mail insured
time and place of mailing (see 2.11n for                                                          for more than $50, a delivery record is
bulk insured articles).                              [Amend 1.1 and 1.2 to read as follows:]      kept at the post office of address.
                                                                                                  Insured mail is dispatched and handled
*     *     *     *     *                            1.1    Priority Mail Drop Shipment
                                                                                                  in transit as ordinary mail.
  n. For bulk insured articles,                        For a Priority Mail drop shipment,
indemnity is provided for the lesser of                                                           1.2 Eligible Matter
                                                     enclosed First-Class Mail may be sent
(1) the actual value of the article at the           certified or special handling; enclosed      [Amend 1.2 to read as follows:]
time of mailing, or (2) the wholesale                Standard Mail (B) may be sent special           The following types of mail matter
cost of the contents to the sender.                  handling. Enclosed mail, regardless of       may be insured:
*     *     *     *     *                            class, may not be sent registered,              a. Standard Mail (B).
2.13     Payment                                     insured, or collect on delivery (COD).          b. Standard Mail matter mailed at the
                                                     No special services may be given to the      First-Class Mail or Priority Mail rates
[Amend 2.13 to read as follows:]                     Priority Mail segment of the drop            (i.e., is not matter described in E110 as
  The USPS does not make payment for                 shipment.                                    required to be mailed as First-Class
more than the actual value of the article                                                         Mail). Sealed matter must be endorsed
                                                     1.2    Special Handling
(or, for bulk insurance, the wholesale                                                            ‘‘Standard Mail Enclosed’’ in addition to
cost of the contents to the sender if a                A combination mailpiece sent as a          the First-Class Mail or Priority Mail
lesser amount) nor make payment for                  Standard Mail (B) parcel may be sent         endorsement.
38030               Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

   c. Official government mail endorsed      filing claims. The postmaster or              [Add new S918 as follows:]
‘‘Postage and Fees Paid.’’                   designee will then provide the customer
                                                                                           S918       [Reserved]
                                             with the approval of the application and
1.3   Ineligible Matter                                                                    S920       Convenience
                                             with information needed to file claims,
[Insert new 1.3f and 1.3g to read as         including the assigned claim numbers.         S921 Collect on Delivery (COD) Mail
follows:]                                    At a future date, electronic filing of
   The following items may not be            indemnity claims will become                  1.0 BASIC INFORMATION
insured:                                     mandatory. Prior to mandatory                 *      *      *     *    *
*      *     *    *     *                    electronic claims filing, customers will
   f. Matter mailed at Standard Mail (A)     be provided with the format instructions      1.2 Eligible Matter
rates.                                       for the new electronic (soft copy) of         [Amend 1.2 by removing ‘‘Single-Piece
   g. Matter mailed at First-Class Mail      Form 3877, Firm Mailing Book for              Standard Mail’’ to read as follows:]
rates (including Priority Mail) that         Accountable Mail, and instructions for          COD service may be used for Express
consists of items described in E110 as       electronic filing of indemnity claims.        Mail, First-Class Mail, Priority Mail, and
required to be mailed at the First-Class     *     *     *     *     *                     Standard Mail (B) (Parcel Post, Bound
rates.                                                                                     Printed Matter, Special Standard Mail,
                                             S915       Return Receipt                     and Library Mail) if:
*      *     *    *     *
[Renumber current 3.0 as 4.0 and insert      1.0    BASIC INFORMATION                      *     *     *    *     *
new 3.0 to read as follows:]                 1.1 Description                               S922 Business Reply Mail (BRM)
3.0 ADDITIONAL REQUIREMENTS—                 [Clarify 1.1 to read as follows:]
BULK INSURANCE                                                                             1.0 BASIC INFORMATION
                                               Return receipt service provides a
                                             mailer with evidence of delivery (to          *    *      *    *   *
3.1   Eligibility                                                                          [Delete 1.5 and renumber current 1.6 as
                                             whom the mail was delivered and date
   To mail at the bulk insured service       of delivery). A return receipt also           1.5]
rates, mailers must obtain an                supplies the recipient’s actual delivery      2.0    PERMITS
authorization under 3.2 and must meet        address if it is different from the address
the following criteria:                      used by the sender. A return receipt          *    *      *    *     *
   a. Enter mailings of insured articles     may be requested before or after              [Delete 2.2. Renumber current 2.3
under an approved manifest mailing           mailing.                                      through 2.8 as 2.2 through 2.7.]
system agreement.                            *     *     *      *     *                    3.0 POSTAGE AND FEES
   b. Mail a minimum of 10,000 insured
articles annually. To meet the minimum       2.0    OBTAINING SERVICE                      3.1 Permit Fee
volume requirement, mailers may total        2.1 At Time of Mailing                        [Amend 3.1 to read as follows:]
all insured articles mailed at multiple                                                      An annual BRM permit fee is charged
locations.                                   [Correct the first sentence by changing       each 12-month period.
   c. Provide a hard copy of Form 3877,      ‘‘Form 3811 or marking the mail’’ to
                                             ‘‘Form 3811 and marking the mail’’ as         *     *     *     *   *
Firm Mailing Book for Accountable                                                          [Replace current 3.4 with new 3.4 to
Mail, or facsimile and a copy of Form        follows:]
                                                The mailer may request the service at      read as follows:]
3877 on a disk or other electronic
medium.                                      the time of mailing by using Form 3811        3.4 Charges
   d. Effective at a future date, provide    and marking the mail with the
                                                                                             a. Postage. The applicable First-Class
a soft (electronic) copy of Form 3877,       appropriate endorsement in 1.3. * * *
                                                                                           Mail or Priority Mail postage on each
Firm Mailing Book for Accountable            *     *     *     *     *                     returned piece is collected from the
Mail, in a new, approved format.             S917       Return Receipt for Merchandise     addressee on delivery. A lower rate of
3.2   Authorization                                                                        First-Class Mail postage applies to
                                             1.0    BASIC INFORMATION                      QBRM (R100).
  Mailers must apply for authorization       *      *      *    *        *                   b. Fee Per Piece. The applicable BRM
to mail at the bulk insured service rates                                                  fee must be collected for each returned
through their local postmaster or            1.2 Availability                              piece of BRM in addition to the
designee by completing the customer          [Amend 1.2 to delete ‘‘Single-Piece           applicable single-piece First-Class Mail
portion of the Bulk Insured Service          Standard Mail’’ as follows:]                  or Priority Mail postage. Lower piece
(BIS) verification form. The postmaster        The service is available only for           fees apply to mail paid through a BRM
or designee will verify on this form that    merchandise sent at the Priority Mail or      advance deposit account and to QBRM
the mailer meets the requirements in         Standard Mail (B) (Parcel Post, Bound         pieces (R900).
3.1. If the mailer does not meet the         Printed Matter, Special Standard Mail,          c. Improperly Prepared QBRM. The
requirements, the application will be        or Library Mail) rates. This service may      appropriate non-QBRM First-Class Mail
denied. If the mailer meets the              not be used on international mail.            postage plus the non-QBRM per piece
requirements in 3.1, the postmaster or                                                     fee is charged for:
designee will certify on the Bulk            1.3 Additional Services
                                                                                             (1) Business reply cards and letters
Insured Service (BIS) verification form      [Amend 1.3 to delete ‘‘Single-Piece           returned under QBRM that were
that the mailer qualifies and forward the    Standard Mail’’ and add ‘‘Priority Mail’’     rejected by USPS barcode sorters and
form to the manager of Claims                as follows:]                                  found not to meet the standards for
Processing at the St. Louis Accounting         Special handling is available for           QBRM.
Service Center (ASC). After reviewing        Priority Mail, Parcel Post, Bound               (2) QBRM pieces with an incorrect
the information, St. Louis will notify the   Printed Matter, Special Standard Mail,        barcode (e.g., a barcode representing the
postmaster of their concurrence of the       or Library Mail, subject to payment of        card rate on a letter-size piece).
application and provide a range of claim     the applicable fee.                           [Delete current 3.5 and renumber
numbers to be used by the mailer for         *     *     *    *     *                      current 3.6 through 3.11 as 3.5 through
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                        38031

3.10, respectively. Amend renumbered            All ink colors are acceptable if the      sealed on all four edges must be
3.6 to read as follows:]                      piece meets the appropriate reflectance     prepared from paper with a minimum
                                              standards in C830 and C840.                 basis weight of 20 pounds (measured
3.6   Cash or Postage Due
                                              *    *     *     *     *                    weight for 500 17 by 22-inch sheets).
  Payment may be paid in cash or by a                                                        b. FIM C must be used (see C100).
                                              4.8 Delivery Address                           c. The ZIP+4 codes and barcodes
regular postage-due account. The
applicable BRM fee is collected, but no       [Amend 4.8 to read as follows:]             assigned to the BRM permit holder by
business reply accounting fee is charged         Unless printed on an address label or    the USPS must be used. Delivery point
when a regular postage-due account is         on an insert for a window envelope          barcodes are not permitted on BRM.
used (P011). A postage-due account            under 6.0, the complete address                d. Except as provided in e, the ZIP+4
does not qualify the BRM for the lower        (including the permit holder’s name,        barcode must be placed on the address
per-piece charge given to permit holders      street address and/or post office box       side of the piece and positioned in
with a business reply account.                number, city, state, and ZIP Code) must     either of these two locations:
                                              be printed directly on the piece, subject      (1) As part of the delivery address
3.7   Account Use                             to these conditions:                        block under C840 if printed on an insert
                                                 a. For pieces distributed under          placed in a window envelope or on an
[Amend renumbered 3.7c and 3.7d to            QBRM, the address must include a            address label affixed directly to the
read as follows:]                             unique ZIP+4 code that is preassigned       piece.
   A BRM advance deposit account must         for the BRM piece and that identifies the      (2) Within the barcode clear zone in
be used only for payment of postage and       type of BRM, the applicable rate, and       the lower right corner of the piece if
fees on BRM, subject to these                 the individual permit holder (see E150).    printed directly on the piece or if
conditions:                                      b. Preprinted labels with only           printed on an insert or a label affixed to
*      *    *     *     *                     delivery address information (including     an insert and placed in an envelope
                                              a ZIP+4 barcode under 5.0) are              with a lower right barcode window
   c. When a permit holder with a
                                              permitted for addressing BRM, but the       under C840.
business reply account desires a
                                              permit holder’s name must still be             e. Until January 10, 2001, mailers may
separation of charges, payment of a
                                              printed directly on the BRM. Permit         continue to use existing stocks of
business reply accounting fee is
                                              holders are liable for the postage and      prebarcoded BRM envelopes and cards
required for each separate billing
                                              fees on BRM returned with improper          with barcodes in the lower right corner
prepared. If a business reply accounting
                                              addressing.                                 that:
fee is not paid for each separation, the         c. The bottom line of the address must
permit holder pays the appropriate non-                                                      (1) Have a barcode clear zone with a
                                              not be lower than 5/8 inch or higher        left boundary that is 41⁄2 inches from the
QBRM First-Class Mail postage, plus for       than 2–1/4 inches from the bottom edge
each separation the per-piece charge                                                      right edge of the piece (not 43⁄4 inches
                                              of the piece. A clear margin void of any    as required in C840).
applicable to any mailer without a            extraneous matter (except for the              (2) Have a lower right barcode for
business reply account.                       horizontal bars specified in 4.9) of at     which the leftmost bar is located
   d. A sufficient balance must be            least 1 inch is required between the left   between 31⁄4 and 4 inches from the right
maintained in the permit holder’s             and right edges of the piece and the        edge of the piece (not between 31⁄2 and
advance deposit account for BRM. The          address.                                    41⁄4 inches as required under C840).
permit holder is notified if funds are        *      *    *     *     *                      (3) Have a lower right barcode
insufficient. After 3 days, if no funds are      f. A company logo is permitted on        window, that has a left boundary
deposited, BRM on hand is charged at          prebarcoded BRM if placed no lower          measuring 41⁄2 inches from the right
the fee for postage due or cash               than 5/8 inch from the bottom edge of       edge of the piece (not 43⁄4 inches as
transactions.                                 the piece and is permitted on               required under C840).
*      *    *     *     *                     nonbarcoded BRM if placed no lower             f. Mailers have until January 10, 2001,
                                              than the top of the street address or the   to comply with C810.2.1c(2) that
3.8   Single Item
                                              post office box line of the address. The    requires pieces measuring more than
[Amend renumbered 3.8 to read as              logo must not interfere with any            41⁄4 inches high or 6 inches long, or both
follows:]                                     required business reply endorsements.       to measure at least 0.009 inch thick.
   Except for QBRM, two or more BRM           *      *    *     *     *                   Until January 10, 2001, such pieces
pieces may be mailed as a single piece                                                    need only meet the minimum thickness
                                              5.0 PREBARCODED BRM                         of 0.007 inch.
if the BRM pieces are identically
                                              [Delete current 5.1 through 5.7, and
addressed and prepared in accordance                                                      5.2 Samples
                                              insert new 5.1 through 5.3 to read as
with C100. BRM postage-due                                                                  Mailers are encouraged to submit
                                              follows:]
calculations are based on the total                                                       preproduction samples of BRM to the
weight of the piece and the appropriate       5.1 General Format Standards                USPS for approval.
First-Class Mail or Priority Mail postage       Prebarcoding of BRM is optional
plus the BRM per-piece charge for one         except for letter-size BRM enclosed in      5.3 Error Notification
piece. If the combined pieces become          automation rate mailings and for QBRM.         If the USPS discovers a BRM format
separated, BRM postage and fee charges        Prebarcoded BRM must meet all general       error, the responsible permit holder or
are calculated for each piece.                format standards in 4.0, the applicable     authorized permit user receives written
*      *    *    *     *                      barcoding standards in C840, the            notification of the error and applicable
4.0   FORMAT                                  mailpiece design requirements in C810       specification. The permit holder must
                                              (except the envelope basis weight           correct the error and make sure that all
*     *    *     *     *                      requirements in 7.1), and these             future BRM pieces distributed by any
4.3   Print Reflectance                       standards:                                  means meet appropriate specifications.
                                                a. An envelope or any mailpiece           The repeated distribution of BRM with
[Amend 4.3 to read as follows:]               formed by an outer sheet or sheets          a format error, as determined by the
38032            Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations

USPS, is grounds for revoking a              C810.4.0 and C810.7.2. Self-mailers              e. Business reply labels may not be
business reply permit. To obtain a new       must contain instructions to the user for      distributed under QBRM.
permit after a BRM permit is revoked for     sealing and folding, so that on return the     [Renumber former Exhibit 6.10 as
not following BRM format                     self-mailer will meet the applicable           Exhibit 6.8.]
specifications, a former permit holder       sealing and folding requirements in            [Delete the entire contents of 7.0.]
must complete a new application on           C810. Barcoded self-mailers, including         S923 Merchandise Return Service
Form 3615, pay the required BRM              QBRM pieces also must meet the
permit fee, pay a new business reply         requirements in 5.0.                           1.0 BASIC INFORMATION:
accounting fee if applicable, and submit                                                    1.1 Description
                                             6.7   BRM Card
two samples of each BRM format to the
appropriate post office for approval for       A BRM card must be rectangular, not          [Delete the words ‘‘Single-Piece
the next 2-year period.                      less than 31⁄2 by 5 inches or more than        Standard Mail’’ in 1.1.]
[Replace 6.0 with the following:]            41⁄4 by 6 inches, and of uniform               *    *     *     *     *
                                             thickness not less than 0.007 inch or          1.3 Payment Guarantee
6.0   MAILPIECE CHARACTERISTICS
                                             more than 0.016 inch to qualify for the
6.1 Paper Weight                             card postage rate. Any card larger than        [Amend 1.3 for clarification and to
                                             those dimensions is mailable but is            eliminate return of articles at the single-
  Paper envelopes used for BRM must                                                         piece Standard Mail (A) rate to read as
have a minimum basis weight of 20            charged at the First-Class Mail rate for
                                             matter other than cards. Additional            follows:]
pounds (500 17- by 22-inch sheets).                                                            a. The permit holder guarantees
Other pieces must meet the basis weight      standards in 5.0 and C810 apply to
                                             prebarcoded BRM, including QBRM.               payment of the proper postage and fees
requirements in C810.                                                                       on all returned merchandise return
6.2 Nonpaper Envelopes                       6.8   BRM Label                                service articles distributed under the
                                                The following standards apply to            permit holder’s permit number. Charges
  USPS Engineering must approve
                                             BRM labels:                                    are collected for each article as postage
nonpaper envelopes for mailability.
                                                a. For other than letter-size pieces, the   due at the time of delivery or from a
6.3 Reflectance                              minimum size of a label with the legend        centralized advance deposit account
   BRM pieces must meet the reflectance      ‘‘Business Reply Label’’ is 2 inches high      using Form 3582–C, Postage Due
requirements in C830. In addition,           and 3 inches long. It is not necessary to      Invoice.
envelope material must not have a red        print FIMs or barcodes on these labels,           b. Articles are charged the required
fluorescence exceeding 4.0 phosphor          but all other BRM format standards             fees and the proper single-piece rate as
meter units.                                 must be met.                                   follows:
                                                                                               (1) The Priority Mail, First-Class Mail,
                                                b. For letter-size envelopes, the
6.4 Sealing and Edges                                                                       Bound Printed Matter, Special Standard,
                                             minimum size of a label with the legend
  Any BRM piece is nonmailable if                                                           or Library Mail rate as marked on the
                                             ‘‘Business Reply Label’’ is 25⁄8 inches
sealed with wax, clasps, string, staples,                                                   label.
                                             high and 41⁄4 inches long. A FIM must             (2) If no rate marking appears on the
or buttons; if all edges are not straight;   be printed on the label. The label must
or if the piece is not rectangular.                                                         label, pieces weighing less than 16
                                             be coated with a permanent adhesive            ounces are charged the applicable First-
6.5 Window Envelope                          strong enough to firmly attach the label       Class Mail or Priority Mail rates based
                                             to an envelope. The labels must meet           on weight, and pieces weighing 16
   The following standards apply to          the standards in 4.8 and 4.9 except that
BRM prepared in a window or open-                                                           ounces or more are charged the Parcel
                                             the series of horizontal bars on labels        Post rate.
panel envelope:                              must be at least 3⁄4-inch high.
   a. The pieces must meet the standards                                                       (3) See 1.12 for postage on articles
                                                c. For letter-size envelopes, the permit    received without a return address or a
in C830 for envelopes with an address
                                             holder must supply the user with               postmark.
windows and inserts.
   b. The endorsement ‘‘NO POSTAGE           instructions describing how the label
                                                                                            *      *      *    *    *
NECESSARY IF MAILED IN THE                   should be applied to an envelope and
                                             what precautions must be observed              1.11 Mailer Markings and
UNITED STATES,’’ horizontal bars,
                                             when applying the label (see Exhibit           Endorsements
FIM, and the legend ‘‘BUSINESS REPLY
MAIL’’ must be printed directly on the       6.8). A pictorial diagram showing              [Revise 1.11 to read as follows:]
address side of the envelope. Other          proper placement of the label must be            If the permit holder desires matter
required elements, including ‘‘FIRST-        included with the instructions. At a           weighing 16 ounces or more to be
CLASS MAIL PERMIT NO.,’’ city, state,        minimum, the instructions must include         returned at a rate other than Parcel Post,
‘‘POSTAGE WILL BE PAID BY                    the following directions:                      the permit holder must preprint the
ADDRESSEE,’’ and the permit holder’s            (1) Place the label squarely on the         appropriate rate marking on the label. If
name and complete delivery address,          upper right corner of the envelope.            the permit hold desires matter weighing
may appear either on the enclosure in           (2) Do not write on the envelope.           16 ounces or less to be returned at the
the window or be printed directly on            (3) Do not use a window envelope, an        Special Standard or Library Mail rates,
the envelope.                                envelope that is less than 1 inch taller       or matter weighing 13 ounces or less to
   c. The address showing through the        than the label, or an envelope with any        be mailed at the Priority Mail rates, the
window must be that of the permit            printing other than the return address.        mailer must preprint the appropriate
holder or an authorized agent/dealer.           (4) Do not use the label on an              rate marking on the label. Otherwise,
                                             envelope more than 41⁄2 inches high.           matter weighing 13 ounces or less will
6.6 BRM Self-Mailer                             (5) Do not use tape to affix the label.     be returned at the First-Class Mail rates
  Self-mailers must be at least 0.007        d. The address must be printed in the          and matter weighing over 13 ounces and
inch thick, not more than 0.25 inch          address block, and the envelope with           less than 16 ounces will be returned at
thick, and meet the requirements for         label affixed must meet applicable OCR         the Priority Mail rates. It is
sealing and folding self-mailers in          readability standards in C830.                 recommended but not required that
                Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules and Regulations                          38033

matter to be returned at the First-Class     4.7 Special Handling                           To participate in BPRS, the mailer
Mail, Priority Mail, or Parcel Post rates    [Revise the last sentence to read as         must make a written request to the
bear the applicable preprinted marking       follows:]                                    postmaster at each post office where
‘‘First-Class’’ or ‘‘First-Class Mail,’’       * * * Special handling service is          parcels are to be returned. The request
‘‘Priority Mail,’’ or ‘‘Parcel Post’’ (or    available only for articles returned at      must:
‘‘PP’’).                                     First-Class Mail, Priority Mail, or            a. At a given delivery point,
1.12 No Return Address or Postmark           Standard Mail (B) rates.                     demonstrate receipt of 10,000 returned
   Articles received without a return        *     *     *     *     *                    machinable parcels (originally mailed at
address or postmark are charged the          4.10 Combining Special Services              Standard Mail (A) rates) during the
required fees and the proper single-                                                      previous 12 months, or
                                             [Amend 4.10 to read as follows:]
piece rate as follows:                         Standard Mail articles (i.e., matter not     b. At a given delivery point,
   a. The Priority Mail, First-Class Mail,   required to be mailed at First-Class Mail    demonstrate a high likelihood of
Bound Printed Matter, Special Standard,      rates under E110) may be both insured        receiving a minimum of 10,000 returned
or Library Mail rate as marked on the        and receive special handing if the           machinable parcels (originally mailed at
label.                                       permit holder meets the applicable           Standard Mail (A) rates) in the coming
   b. If no rate marking appears on the      standards.                                   12 months. * * *
label, pieces weighing 13 ounces or less       Registered merchandise return pieces       *     *     *     *    *
are charged the First-Class Mail rates,      cannot receive any other special service.
pieces weighing over 13 ounces and less                                                   2.2 Permit Renewal
                                             *     *    *    *     *
than 16 ounces are charged the Priority
Mail rates, and pieces weighing 16           5.0    FORMAT                                [In the last two sentences change
ounces or more are charged the Parcel                                                     ‘‘single-piece Standard Mail (A) rate’’ to
                                             *      *      *     *    *
Post rates.                                                                               ‘‘single-piece First-Class Mail or Priority
   c. Zoned rates are calculated at zone     5.6    Format Elements                       Mail rate as appropriate for the weight
4.                                           *      *     *    *     *                    of the piece.’’]
*      *     *    *     *                    [Revise 5.6c to read as follows:]            *     *      *    *     *
                                                Format standards required for the
3.0   POSTAGE AND FEES                       merchandise return label are shown in        S930    Handling
*     *    *     *     *                     Exhibit 5.6a, Exhibit 5.6b, and Exhibit      1.0 SPECIAL HANDLING
                                             5.6c and described as follows:
3.2 Transaction Fee                                                                       1.1    Description
                                             *      *     *    *     *
   [Change ‘‘Standard Mail’’ to                 c. Rate Marking. If the matter to be
‘‘Standard Mail (B)’’ as follows:]                                                        [In 1.1 change ‘‘E620’’ to ‘‘E630.’’]
                                             returned bears a rate marking as
   The applicable transaction fee is         required or recommended under 1.11,          [Amend 1.2 through 1.4 to read as
assessed for each item returned, in          the rate marking must be placed in the       follows:]
addition to single-piece Priority Mail,      space to the right and above the
First-Class Mail, or Standard Mail (B)                                                    1.2    Availability
                                             ‘‘Merchandise Return Label’’ rectangle.
rate postage and as applicable, the fees     The marking must be at least 1⁄4-inch          Special handling service is available
for pickup or special services.              high and printed or rubber-stamped.          only for First-Class Mail, Priority Mail,
*     *     *    *     *                     Only the permit holder may apply this        and Standard Mail (B) (Parcel Post,
4.0   ADDITIONAL FEATURES                    marking.                                     Bound Printed Matter, Special Standard
                                             *      *     *    *     *                    Mail, and Library Mail).
4.1 Insured Mail                             [Revise 5.6e(3) to read as follows:]
                                                e. Registry Service. * * *                *     *     *     *   *
[Amend 4.1 to read as follows:]
   The permit holder may obtain insured      *      *     *    *     *                    1.4 Bees and Poultry
mail service with direct merchandise            (3) The appropriate insurance
return service but not with Priority Mail    endorsement, below the ‘‘TOTAL                 Unless sent at the First-Class Mail or
reshipment. The customer using a             POSTAGE AND FEES DUE’’ entry: if             Priority Mail rates, special handling is
merchandise return label to return an        matter returned has value ($0.01 or          required for parcels containing
article that does not have the               greater), ‘‘REGISTERED MAIL SERVICE          honeybees or baby poultry. Under
appropriate postage due computation          WITH POSTAL INSURANCE DESIRED                C022.37, only queen honeybees may be
markings in 5.0 or the endorsement           BY PERMIT HOLDER’’; if matter                shipped by aircraft. Check with your
specified in 4.2 may not obtain insured      returned has no value ($0.00),               local post office for mailability prior to
mail service. Only Standard Mail matter      ‘‘REGISTERED MAIL SERVICE                    mailing honeybees other than queen
(i.e., matter not required to be mailed at   WITHOUT POSTAL INSURANCE                     honeybees at First-Class Mail or Priority
First-Class Mail rates under E110)           DESIRED BY PERMIT HOLDER.’’                  Mail rates.
returned at the Standard Mail (B) rates      *      *     *    *     *                    *     *     *     *     *
or First-Class Mail or Priority Mail rates
                                             S924       Bulk Parcel Return Service          An appropriate amendment to 39 CFR
may be insured. If the matter is to be
                                             *      *      *     *    *                   111.3 to reflect these changes will be
returned as First-Class Mail or Priority
Mail, the endorsement ‘‘Standard Mail                                                     published if the proposal is adopted.
                                             2.0    PERMITS                               Stanley F. Mires,
Enclosed’’ must appear below the class
of mail endorsement on the                   2.1 Application Process and                  Chief Counsel, Legislative.
merchandise return label.                    Participation                                [FR Doc. 98–18271 Filed 7–13–98; 8:45 am]
*      *     *     *    *                    [Revise 2.1a and 2.1b to read as follows:]   BILLING CODE 7710–12–P

				
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